BME Renta Fija has admitted Endesa's renewal of its Commercial Paper Programme to trading on the AIAF Market, which increases the maximum outstanding balance by 33%, from 3 to 4 billion euros. This increase in the limit of the outstanding volume ranks Endesa as the top issuer of non-financial commercial paper (CP) in this market.
As in the previous Programme, with this admission to trading the company will be able to flexibly issue CPs denominated in different currencies, with per-unit nominal amounts of 100,000 euros or 500,000 dollars and maturities between 3 and 364 days.
One of the Programme’s main new features is the inclusion of a new environmental clause with which Endesa - as established under its 2020-2022 Strategic Plan – commits itself to achieving 2.8 GW of additional generation capacity through renewable energy by 2022. If this objective is successfully achieved, the proportion of renewable capacity as a percentage of the net installed capacity by Endesa in Spain will be approximately 55%. The incorporation of this new green factor in the company’s CP Programme reinforces Endesa's commitment to the 2030 Agenda and to SDG-7 (affordable and clean energy) of the United Nations’ Sustainable Development Goals in particular. The external rating and research agency Vigeo Eiris has issued an independent opinion about the relevance of the objective.
In this CP Programme Endesa relies on a significant presence of international Placement Entities, with Banco Santander, Barclays Bank, BNP Paribas, BRED Banque Populaire, Citigroup, Goldman Sachs, Crédit Agricole, ING Bank, NatWest Markets and Société Générale as Dealers, which will place the CPs among national and international investors. CaixaBank repeats as Payment Agent for the Programme.
Clifford Chance has provided legal advice to the placement entities in relation to certain aspects of Spanish and English legislation affecting the Programme.
Endesa has an A-2 short-term rating, stable outlook, by Standard & Poor's; P-2, positive, by Moody’s; and F-2, stable, by Fitch.
Gonzalo Gómez Retuerto, General Manager of BME Renta Fija, stated: “we are proud that Endesa has chosen BME again as its market of choice for the registration of this new CP Program”. It is also worth mentioningits increased volume and the incorporation of new commitments to the UN’s 2030 Agenda and SDGs, “which must become the benchmark when leaving behind the ongoing health crisis”.
Endesa is one the major operators of reference in Spain’s energy sector, where it carries out electricity and natural gas generation, distribution and commercialisation operations. In 2019 the company posted revenues of 20.15 billion euros and EBITDA of 3.84 billion.