La Finca Global Assets SOCIMI has incorporated its first Commercial Paper programme in the Alternative Fixed Income Market (MARF) for a maximum outstanding amount of 30 million euros. With this program, the company will be able to diversify its sources of funding and issue short-term debt over the next 12 months. For this Programme 4 Banco acts as Arranger, Placement Entity and Registered Advisor, while Pinsent Masons España was chosen as the legal advisor.
La Finca Global Assets SOCIMI is a Spanish REIT company founded in 2016 as the result of the division of Promociones y Conciertos Inmobiliarios, S.A. (Procisa) in three companies: La Finca Global Assets SOCIMI, S.A., LaFinca Somosaguas Golf, S.L. and La Finca Promociones y Conciertos Inmobiliarios, S.L.
La Finca Global Assets’ core business lies in the acquisition and development of urban real estate for lease, focusing on the prime office segment. It manages a broad portfolio of real estate assets including 12 office building in Madrid’s financial centre and around 130,000 square meters in the exclusive area of La Finca (Pozuelo de Alarcón), where it also has in property a car parking as well as sports and catering facilities. The value of the portoflio amounted to 759.4 million euros in 2020.
As of 2019, the company had consolidated revenues of 50.6 million euros and a net result of 21.2 million euros, a 21% increase regarding last year. The shares of La Finca Global Assets SOCIMI are listed on BME Growth.
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 here)