According to Slovenian news agency STA, household appliances manufacturer Gorenje has raised EUR 27m in an issue of 10-month commercial papers to secure financing in the face of higher seasonal demand. The notes will be listed for secondary trading on the Ljubljana Stock Exchange.
The issue is part of Gorenje’s efforts to diversify sources of financing and addresses increased cash flow demands usual for the beginning of the year, which tend to decrease, up to the fourth quarter when cash flow surplus is generated. With the last year’s issue of 5-year bonds and current issue of 10-month commercial paper, combined, Gorenje has raised EUR 100 million in capital markets in no more than four months. Thus, the company is sourcing over a quarter of its financing through capital markets, which has resulted in better stability and financing terms.
The papers carry a 2.20% annual interest rate, Gorenje said in a press release on Friday, adding that demand outstripped supply by 35%.
This is the third issue of commercial papers for the Velenje-based group, the last one dating to March 2014, when EUR 35m was raised in an issue of 9-month commercial papers at an annual interest rate of 4%.
Commercial paper will be traded on the regulated market of the Ljubljana Stock Exchange (Ljubljanska borza vrednostnih papirjev, d. d.). Commercial paper will also be offered in the second subscription round from March 2, 2015, to December 1, 2015, up to a final total issue amount of EUR 30 million nominally.
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