Audax Renovables has established a Euro Commercial Paper (ECP) Programme with an outstanding amount up to 300 million Euros. The programme, which is under English Law, will allow the company to issue short-term debt with maturities up to 364 days. This international programme, listed on the Irish Stock Exchange, is available for any professional investor in Europe, allowing the Company to expand its investor base in the international markets. Audax is the first independent energy company to enter this market.
Banco Santander and Bred Banque Populaire are the Placement Entities of the programme, and J&A Garrigues together with Freshfields Bruckhaus Deringer the legal advisors.
Audax Renovables, company listed on the Spanish Continuous Market, is the result of the merge between Audax Renovables and its parent company, Audax Energía. Currently, as an energy group, Audax has a leading position in the SME Spanish sector. The Group focus its activity on the sale of renewable energy and gas, as well as the production of 100% renewable energies. It has an international presence as it operates in Spain, Portugal, Italy, Germany, Poland, Holland, and Panama. As of 2019 the Group had revenues of €1,044 million and an EBITDA of €73 million. Audax has a BBB-, stable outlook ratified rating by Axesor. The rating agency considers that, thanks to the Company’s proper business model and solid financial foundation, Audax will be able to maintain an adequate credit profile.
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.
Europa Press (See the entire post in Spanish)