Grupo Gransolar has registered a new Commercial Paper programme with a maximum outstanding of €30 million in MARF, BME’s Fixed Income Market. The programme will allow the Company to issue short-term debt with maturities up to 24 months and to diversify its funding sources during the following 12 months.
Banca March acts as the Registered Advisor and Paying Agent of the programme in MARF. Bankinter and Banca March are the Placement Entities of the programme and Pérez-Llorca the legal advisor.
Grupo Gransolar promotes and develops renewable energy generation sources. The Company focuses its activity on the construction of photovoltaic plants and any other industrial project based on renewable energy generation sources, participating in the phases of development, design, construction and subsequent operation and maintenance.
Gransolar has a wide international presence as an EPCM (Engineering, Procurement, Construction & Management) builder, operating in 17 countries, participating in the development of over 100 photovoltaic plants with an installed capacity exceeding 2 gigawatts. Additionally, the Group has an additional 1.5 gigawatts in the pipeline to be develop in the coming years.
As of 2019 Grupo Gransolar had consolidated revenues of 401.4 million euros and an EBITDA of 24.7 million euros.
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: BME (See the entire post)