Ingeniería Sampol has registered a new Commercial Paper programme in MARF, BME’s Fixed Income market, of 50 million Euro and maturities up to 24 months. This programme will allow the company to issue short-term debt during the following 12 months and to diversify its funding sources.
Currently, Sampol is using MARF for both short and long-term debt as it issued a 5-year, €25 million bond in February of 2019.
Sampol is a multinational group of Spanish capital, founded in 1934, whose activity is carried out through three business areas: energy, integral installations, and technology. The Group’s activity is focused on several sectors, both public and private, as transport infrastructure sectors, generation and distribution of energy, industrial facilities or telecommunication infrastructures.
The Group has an international presence, operating in Spain, Italy, Canada, Mexico, Dominican Republic, Jamaica, Puerto Rico, Panama and Cabo Verde. As of 2018 the Company had revenues of €175 million, and an EBITDA of €23.8 million. Net Financial Debt decreased from €28.8 million in 2017 to €-1.2 million in 2018.
The Company has a BBB- rating, stable outlook, granted by Axesor.
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)