Avatel Telecom has established its first Commercial Paper programme in BME’s Alternative Fixed Income Market (MARF) for a maximum outstanding of 40 million euros and maturities up to 24 months, which will enable the company to issue short-term debt over the next 12 months.
Avatel is a telecommunications company specialized in broadband coverage in rural areas through the deployment of fiber optics. Furthermore, the Group also offers high speed Internet services, WIMAX, a wide platform of TV channels as well as landline and mobile phone services. The company was founded in 2011 in Costa de Sol and actually it offers its services throughout Spain due to its expansion process through the integration of other local telecommunications operators and its own ressources. Currently, Avatel Group has a network of more than 2.200 employees and has become the fifth largest fibre optic operator in Spain.
As of year-end 2020, Cunext had consolidated revenues of 77.9 million Euros and reached an EBITDA of 20.5 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.
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