Network Steel Resources has registered a new Commercial Paper programme with a maximum outstanding of 150 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.
Network Steel Resources is the parent company of Network Steel Group, which focuses its activities on the import, production, cutting and transformation of flat steel products.
Founded in 2002, the Group is organized into two business lines; the trading area, which covers the company’s import activities, mainly from non-EU countries, with offices in Spain, Switzerland, China and Morocco, and the industrial area, where the production activities are grouped. The Group has four industrial plants in Spain as well as several services centers in Spain and Portugal.
As of 2019 Network Steel Resources Group had consolidated revenues of 619.9 million euros and an EBITDA of 25.1 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)