Zener Encitel has established its first Commercial Paper programme in BME’s Alternative Fixed Income Market (MARF) for a maximum outstanding of 50 million euros and maturities up to 24 months, which will enable the company to issue short-term debt over the next 12 months.
Zener is a company specialized in the development of projects in the fields of Telecommunications, Energy, Civil Works, Remote Management and ICT Development, not only in Spain but also worldwide. The company, with over 35 years of experience, started as a pioneer in the installation and maintenance of telecommunications infrastructures. Currently, it has diversified its activity to other sectors such as renewable energy, civil works and construction, security and alarms as well as the development of Information and Communications Technologies. Group Zener generates more than 5.000 jobs in different offices around Spain, Germany, Chile, Netherlands and Portugal. Moreover, the company performs in projects in 12 different countries in four continents.
As of year-end 2020, Zener had consolidated revenues of 195.4 million Euros and reached an EBITDA of 15.7 million Euros.
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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.
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