This new funding tool will allow Urbaser- which makes its debut in the BME Fixed Income Market – to issue Commercial Paper over the next 12 months with a maximum outstanding amount of 200 million euros. The securities to be issued under the Programme will have a minimum denomination of €100,000 and their issuance terms will range between 3 days and 2 years.
Urbaser is one of the World’s leaders among environmental management business Groups. It covers the entire environmental management value-chain and is structured into four activity areas: Urban Services, Municipal Waste Treatment, Treatment of Industrial Waste and Integral Water Management.
The Group is the market leader in Spain, Portugal, Sweden, Finland, Denmark, Norway, Chile, Argentina and Bahrain. As of 2018 Urbaser had consolidated sales of €1.85 billion and a workforce of 31,213 employees.
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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)
