The Nimo’s Holding has established its first Commercial Paper programme in BME’s Alternative Fixed Income Market (MARF) for a maximum outstanding amount of 20 million euros, which will enable the company to issue short-term debt over the next 12 months.
EBN Banco, ANDBANK España and GVC Gaesco are the Dealers of the programme, with EBN Banco as the Arranger and Registered Advisor. Evergreen Legal was the legal counsel for the programme.
The Nimo’s Holding is a Spanish private limited company founded in 2013. It is the parent company of Inveready, a company structured under 18 dependent societies. The company’s core business lies in asset management along with financial and fiscal advice for SMEs. It currently has a mandate for the management of 21 venture capital companies or funds, with assets under management of close to 500 million euros.
The Nimo’s Holding company had consolidated revenues of 15 million euros last year 2020 and the EBITDA reached 4.6 million euros, twice last year’s numbers. Axesor granted the issuer a long-term rating of BB-.
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)