Urbas has established its first commercial paper program in BME’s Alternative Fixed Income Market (MARF) for a maximum amount of 50 million euros, a program with which the company will be able to access qualified investors to diversify financial resources in the short term, a greater range of financing sources and management optimization of your debt in terms of costs and terms. The note program will allow them to issue debt with maturities of up to two years over the next 12 months.
Founded in 1944, Urbas operates in the real estate sector. The company is dedicated to building, selling and managing residential units. The group structures its activities through its brands: Ad Home, CHR, Ecisa, Joca, Murias, Urrutia, Sainsol y Ksilan, Ingeser, and Kuo with the purpose of satisfying the needs of its clients and generating value for all stakeholders of the company.
In addition, Urbas has several strategic business units that include real estate development, land management, rental asset management, cooperative management and the development of residential and social health centers. The growth plan for the next ten years involves strengthening its core activities, developing products and services, and nurturing its innovation processes.
The Urbas Group is made up of a group of companies that operate nationally and internationally, mainly in South America and Europe. Their experience, strategic vision, innovation and diversification have made them one of the leading players and specialists in sustainable infrastructures and buildings, with significant synergies with property development, renewable energy and mining.
Urbas had a turnover of more than 15,926 million euros in 2021 and an EBITDA of 7,278 million euros.
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: Urbas (see the entire post here)