In line with a range of foreign companies GEN-I will this year again take advantage of the opportunity to borrow directly on the money market. Last year's issue of commercial papers proved extremely successful with GEN-I realising its target figure of 30 million EUR. In addition, investor interest far exceeded the benchmark level necessary to finance the company.
Last year's successful issue of commercial papers enabled GEN-I to improve its reputation and credit rating even with its most demanding western business partners, and also to establish new partnerships with major companies across the wider capital market. The company has also reduced its dependence on Slovenian banks thereby limiting potential risks associated with the Slovenian banking sector. GEN-I has acquired a quality source of finance at a highly competitive rate which together with bank-sourced lending provides sufficient liquidity to successfully perform the company's core business operations.
This year GEN-I will again issue commercial papers and the company is currently in the final stages of binding bids. Judging by investor response, the offer is again set to exceed borrowing requirements and the resulting reduction in the required return on its commercial papers, compared to last year’s first issue, will enable GEN-I to cut borrowing costs. Just as last year, funds raised will again be used to support the company’s core activities, in particular the financing of working capital.
The extent of the issue has not yet been determined, but will probably amount to EUR 30 million. This year's commercial papers are intended to replace previous one-year commercial papers issued in February 2013.