MARF, BME’s Fixed Income market, today registered a new Commercial Paper (CP) programme by Tradebe’s holding company, Grupo Tradebe Medio Ambiente, which thus becomes the first company to register a new commercial paper programme on MARF in 2019.
With this new facility for the continuous issuance of CPs over a year, Tradebe Environmental Services will have a maximum outstanding balance of up to 50 million euros available at any time, which will allow it to cover terms of up to two years.
PKF Attest is Tradebe’s Registered Advisor with MARF and Banco Santander, Beka Finance, Fidentiis Equities and Norbolsa participate as the Programme’s Collaborating Entities. Banco Santander will be the Payment Agent and J&A Garrigues has legally assisted Tradebe in this transaction.
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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 (see the entire post)
