El Corte Inglés has renewed its Commercial Paper programme in MARF, BME’s Fixed Income market, increasing its size to a maximum outstanding amount of 1,200 million Euro. The programme will allow the Company to continue issuing short-term debt with maturities up to 24 months and diversifying its funding sources. This new programme is currently the largest one in MARF.
PKF Attest has been the Registered Advisor and the coordinator of the programme since its debut in 2015 in MARF. Bankia acts as the Paying Agent and Pérez-Llorca Abogados as the Legal Advisor of this programme.
This is the second time the limit of the programme has been increased this year; in November, El Corte Inglés increased the size of the previous programme from €500 to a maximum outstanding amount of €750 million. The Group is a frequent and recurrent issuer in the Commercial Paper market and currently has the largest outstanding in MARF.
Founded in 1935, El Corte Inglés is one of the largest European department stores and a benchmark in Spanish distribution. In 2018 the Group had revenues of €15,783 million, an EBITDA of €1,075 million and over 90,000 employees.
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: Expansión (See the entire post – Spanish version)