Mango has set up a new Commercial Paper programme of €200 million in MARF, BME’s Fixed Income market. The programme will allow the Company to issue short-term debt with maturities up to two years. The textile Group has registered this programme through its operating company Punto FA.
Since its foundation in 1984 the Group has focused its activity in the design, production, distribution and commercialization of clothing and complements. The Group’s business is structured in four branches; Mango Woman, Mango Man, Mango Kids and Violeta by Mango.
As of 2018 the Group owned 2,183 stores, from which 1,281 operate as franchises in 105 countries and employs over 15,000 people worldwide. Consolidated revenues for the year 2018 amounted for 2,233 million Euro.
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:BME (See the entire post)