Técnicas Reunidas has registered a new Commercial Paper programme with a maximum outstanding of €100 million in MARF, BME’s Fixed Income Market. The programme will allow the Company to issue short-term debt with maturities up to 24 months and to diversify its funding sources during the following 12 months.
Técnicas Reunidas is an engineering company specialized in industrial projects. TheGroup focus its activity on the design and management of the execution of industrial plant projects throughout the world. The company has 3 main business areas: Refining and Petrochemicals, Upstream and Natural Gas, and Energy and Water. With almost 60 years of experience, it has designed and managed the construction of more than 1.000 industrial plants in over 50 countries.
As of June 2020, the Company had revenues of 2.109 Million euros and an EBITDA of 33.1 Million Euros
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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.
Source: BME (Read the entire post here)
