El Corte Inglés, a leading retail group in Spain and Portugal, has increased the size of its Commercial Paper programme listed on MARF, BME’s Fixed Income Market, from €500 million to a maximum outstanding amount of €750 million.
El Corte Inglés first established a €300 million domestic commercial paper programme in MARF in 2015, which was increased in 2017 to €500 million. PKF Attest is the Registered Advisor and the programme coordinator since its debut in this market in 2015.
The Group is a frequent and recurrent issuer in the commercial paper market and currently has the largest outstanding in MARF.
Since its foundation in 1935, El Corte Inglés has become one of the largest European department stores and a benchmark in Spanish distribution. As of 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)