El Corte Inglés Issues 1.2 Billion Euro Commercial Paper to Fund its Operations

Retail giant El Corte Inglés has once again turned to commercial papers to meet its short-term operational needs. The company has renewed its issuance plan, enabling a maximum balance of 1.2 billion euros, effective until December 1, 2024.

Commercial Paper Details:

Despite the rise in interest rates, El Corte Inglés has opted for a 1.2 billion euro commercial paper issuance, a decision communicated to the Alternative Fixed-Income Market (MARF). These papers are linked to sustainability criteria, focusing on social or reforestation projects. They mature within a minimum of three days and a maximum of two years, targeting major investors in the wholesale market, with minimum amounts set at 100,000 euros.

Interest Rate Trends:

According to reports from the economic newspaper Cinco Días, the interest rates for investors have doubled in the last year. In El Corte Inglés' commercial paper program renewed in December 2022, rates were over 2%, and a year later, they stand at 4%. Despite this increase, the Spanish group continues to embrace this financing tool due to its flexibility and cost-effectiveness compared to other short-term options.

Financing Strategy:

This financial move aligns with El Corte Inglés' strategy to maintain financial flexibility. The company's commitment to sustainability is evident in linking the commercial papers to projects with positive social and environmental impacts. This approach allows El Corte Inglés to fund its operations efficiently while contributing to meaningful initiatives.

Recent Financial Actions:

This issuance follows another recent action taken by El Corte Inglés in October, where the retail group requested creditors to extend its debt until 2029. The request sought an extension of the maturity of credits totaling 2.6 billion euros signed in 2022 by an additional year, showcasing the company's proactive approach to managing its financial commitments.

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El Corte Inglés renews €1.2 billion commercial paper program on MARF