MARF, BME’s Fixed Income market, today registered a new Commercial Paper (CP) programme by TSK Electrónica y Electricidad. Through the programme, the company opens a new line for the diversification of its short-term financing sources. The new programme for continued issuance of CPs will allow TSK to have an outstanding balance of up to 150 million euros available.
Banca March acts as Sole-Lead Arranger and Placement Entity for the Programme. In addition, it will be TSK’s Registered Advisor in MARF. J&A Garrigues has acted as legal advisor to the issuer in this operation.
TSK Electrónica y Electricidad is an industrial group that acts as an integrated operator and participates in the entire value chain of the projects and installations it carries out. It is organised into six business units linked to the conventional and renewable energy sector, design and construction of industrial plants, the environment, electrical infrastructures, handling and storage, oil & gas and exploitation of solar power plants.
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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)
