Nueva Pescanova has established its first Commercial Paper programme in BME’s Alternative Fixed Income Market (MARF) for a maximum outstanding amount of 50 million euros, which will enable the company to issue short-term debt over the next 12 months.
The Group Nueva Pescanova is a fishing Spanish company headed in Galicia and founded in 2015. The company’s core business lies in the fishing and commercialization of over seventy different sea species in eighty countries around the world. It was the first company to sell frozen seafood in Spain as well as in many other countries. Currently the company has over sixty vessels operating in the South Hemisphere, as well as a 7,000-hectare surface area for the species cultivation and seventeen transformation plants spread over Africa, America, Asia and Europe. The Group employs over 11,000 people.
As of December 2020, Nueva Pescanova had consolidated revenues of 905,2 million euros and the EBITDA reached 40,7 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 here)