Pamesa has established its first Commercial Paper program for a maximum outstanding of 150 million euros. With this program, the Company will be able to access qualified investors to diversify its financial resources in the short term, a greater range of financing sources and optimize the management of its debt in regarding costs and deadlines. The note program will allow you to issue debt with a maturity of up to two years over the next 12 months.

Founded in 1972, Pamesa develops its business in the industrial sector. The company designs, manufactures and markets ceramic products The Group’s activity is carried out through its six brands Pamesa, TAU, Prissmacer, Ecoceramic, Geotiles and Navarti, with the aim of satisfying the needs of its customers and generating value for all the company’s stakeholders

In addition, Pamesa has several strategic business units that includes electricity production, energy trading, extraction and sale of raw materials, and trading of chemical products. The company’s business plan for the next ten years involves strengthening its core activities, developing products and services, and nurturing its innovation processes.

The Group is one of the most solid groups dedicated to the manufacture and sale of ceramic products in the world, being the first European producer of ceramics and the fifth worldwide. It covers 19% of the sector’s production in Spain and its turnover has increased five times in the last 10 years.¡

Pamesa had a turnover of more than 1,200 million euros as of 2021.

Commercial Papers are an efficient source of funding

Commercial Papers are short-term money-market securities used as a funding source by financial institutions, as well as governments, supranational agencies and mid and large corporations.

For corporate issuers, Commercial Papers are an extremely efficient funding source, that is complementary to banking facilities and credit lines. It is an efficient working capital solution via Debt Capital Markets.

Commercial Papers are issued under a shelf programme, that has an annual validity (renewable) and a predetermined maximum outstanding size. Notes under a CP programme may be issued at a discount or at a premium, they may bear fixed or floating rate interest. Although CPs, most usually, carry an implicit coupon, they are issued at discount and mature at par (100%)

Maturity of Notes ranges from 3 days to 24 months for Pagarés Programmes and from 1 to 364 days for ECP (European Commercial Paper Programmes).

Commercial Papers are multi-currency instruments that can be issued in different currencies, predominantly in EUR, USD, CHF and GBP. They have a minimum denomination of €100K and are intended for wholesale institutional investors, both national and international.

Source: Pamesa (see the entire post here)