Visabeira, Portuguese holding group, has registered a new Commercial Paper programme of €50 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.
Grupo Visabeira is the first Portuguese business group to use MARF for both short and long-term debt as Vista Alegre Atlantis (one of its subsidiaries) issued a €45 million bond last October.
Visabeira was founded in 1980 focused on the telecommunications and energy sectors. The holding Group is the consequence of an international expansion strategy and a corporative diversification into new business lines.
The Group has its main activities organised in three holdings, segmented and specialised by business line:
- Visabeira Global: telecommunications, energy, technology and construction.
- Visabeira Industry.
- Visabeira Tourism and Services.
The Group has an international presence as it operates in Portugal, Spain, France, UK, Germany, Belgium, Denmark, Italy, Angola, Mozambique, India, Brazil, USA and Mexico. Its products and services are traded in over 90 countries.
As of 2018 the Group had consolidated revenues of €745.4 million and an EBITDA of €141.8 million. It has over 11,000 employees through more than 100 investee companies.
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)