Cecotec Innovaciones has registered a new Commercial Paper programme in MARF, BME’s Fixed Income market, of 50 million Euro and maturities up to 24 months. This programme will allow the company to issue short-term debt during the following 12 months and to diversify its funding sources.
Cecotec’s activity is focused on the design, manufacture and commercialization of small household electronic devices. In 2015 the company changed its commercial strategy and began to commercialize its product either directly to final clients or through large international distribution chains.
This new commercial policy led to an important sales growth. The company’s turnover increased from 9.5 million euro in 2016 to 106.4 million in 2018. In 2018 EBITDA amounted 23.4 million Euro.
Commercial Paper is 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.
Source: BME (See the entire post)