PRYCONSA has established a new Commercial Paper programme of €100 million in MARF, Spanish Fixed Income Market. The Programme will allow the company to issue short-term debt with maturities ranging between 3 days and 24 months.

Pryconsa is considered a major company in the residential Spanish market. The company was founded in 1965 and since then, it has sold over 69,000 houses all over the country. The Group has a diversified portfolio of assets, such as residential properties, tourist complex, shopping centres and offices, residences for the elderly or retail units.

As of 2018, Pryconsa had 212.3 million euros of total revenues. The 87% of its total sales came from real estate development. The remaining amount was generated via real estate construction activities and through the management of a portfolio of rental assets.

By 2019 year-end, the Group forecasts to have finished 561 houses out of the 2,866 that are currently under construction.

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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.

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