Group Avintia has incorporated a new Commercial Paper programme in BME’s Fixed Income Market (MARF) for a maximum amount of 35 million euros and maturities of up to 24 months. With this program, the company will be able to diversify its sources of financing and issue short-term debt over the next 12 months.
Even though this is Avintia’s first Commercial Paper programme, the Company has already use the MARF as a funding source;in March 2018 the Group issued through its subsidiary Avintia Proyectos y Construcciones a 3-year, 50 million euros bond.
Group AVINTIA is one of the most active industrial groups in the real estate market. Avintia was founded in 2007 and since then the Company has diversified its business lines, including into the energy sector.
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.