FCC Servicios Medioambientales has set up an ECP programme in ISE, the Irish Stock Exchange, with a maximum outstanding up to €300 million. FCC already issued other ECP programme in November 2019 with a maximum outstanding up to €600 million.
This new programme will allow the company to issue short term debt with maturities up to 364 days. This international programme is open to any professional investor in Europe, allowing the company to expand its investment base in the international markets.
FCC Servicios Medioambientales, is a subsidiary of the FCC Group, which is a global leader in the environmental services since 1911.
The FCC is based in Spain, but is also present in several countries of Europe, Africa and America, through its subsidiaries (FCC Servicios Medioambientales, FCC Aqualia, FCC Construcción).
As of 2019 the company presented a revenue of €2.915 million, an EBITDA of €493 million and has more than 40.000 employees.
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.
Source: Banca March (See the entire post – only in Spanish)