Grupo Pikolin has renewed its Commercial Paper programme in MARF, BME’s Fixed Income market, maintaining the maximum outstanding amount of 50 million Euro. The programme will allow the Company to continue issuing short-term debt with maturities up to 24 months and diversifying its funding sources.
PKF Attest continues as the Registered Advisor and the global coordinator of the programme since its debut in MARF in 2016. Bankia acts as the Paying Agent and J&A Garrigues as the Legal Advisor of this programme. Banco Santander, Bankia, Beka Finance y Norbolsa act as the Placement Entities of the programme.
Founded in 1948 in Zaragoza (Spain) is currently the second largest European group in the bedding industry and the leader in Spain, Portugal and France.
As of December 2019, Pikolin Group had ten production plants, distributed in Europe (France and Spain), Southeast Asia (China and Vietnam) and in Brazil. The Group employs over 3,000 workers.
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Commercial Paper is 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: BMERF (See the entire post – only in Spanish)
