Visalia has incorporated its first Commercial Paper program in BME’s Alternative Fixed Income Market (MARF) for a maximum outstanding amount of 33.9 million Euros. The program will allow the company to access qualified investors to diversify financial resources in the short term, a greater range of financing sources and management optimization of their debt in terms of costs and tenors. The CP programme will allow the Company to issue debt with maturities of up to two years over the next 12 months.
The Visalia Group is an independent energy group as a supplier of natural gas and diesel, currently in the process of vertical integration with the electricity generation business. The Group focuses on small and medium-sized companies, as well as retail and homeowners’ associations. The Group, through its several companies, which have been operating in the market for more than ten years with one of the highest loyalty and growth rates in the sector, supplied to more than 100,000 customers in 2022.
The notes to be issued under the program will be considered green instruments in accordance with Visalia’s Green Financing Framework 2023 and ICMA’s Green Bond Principles (GBP). The issuer has obtained an SPO (Second Party Opinion) from Serfiex and the proceeds of the issues will be used to finance projects aligned with the GBPs.
The Group expects for FY2022 to have consolidated revenues of over 430 Euro million and an EBITDA of 32 Euro million (margin of 7.4%).
Commercial Papers are an efficient source of funding.
Commercial paper programmes 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 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 here)