"After informing us about the opportunities provided by the NEU CP/MTN market, Redbridge skillfully supported our entry into the market with a streamlined and efficient process that ensured smooth interaction between all the stakeholders. "

Alain Byl
Group Treasurer

Assignment overview

  • Implementation of Negotiable European Commercial Paper (NEU CP) and Negotiable European Medium Term Notes (NEU MTN) programs of €600 million each.

Objectives

  • Reduce liquidity risk and further diversify the Group’s funding
  • Optimize cost of funding, exploiting the Belgian CP and NEU CP programs’ potential.
  • Smoothen the debt maturity profile, with NEU MTN reducing the gap between short-term commercial paper (<1 year) and long-term private placements or bonds (>5 years).

Results

  • Launch of NEU CP & NEU MTN programs of €600 million each, with three dealing agents (Aurel BGC, BNP Paribas and Bred) selected from among the most active players in the NEU CP market, ensuring strong support for the inaugural issuances.
  • Inaugural issuance of €41.5 million at highly competitive prices and maturities ranging from 1 to 12 months.
  • Strong investor appetite for Umicore’s credit.

Methodology

  • Management of two processes running in parallel.
  • Approval process of the financial documentation with the French Central Bank.
  • Request for Proposal for the selection of the dealers and paying agent.
  • Personalized approach with banks taking into account existing relationships, their motivations and their ability to support the launch and ongoing management of the programs.
  • Drafting of the Sales Credit Memo, which ensures market adherence to the programs as well as a fair coupon/maturity balance.

Redbridge’s added value

  • Coordination of the entire project;
  • Drafting of the financial documentation and management of the discussions with the French Central Bank.
  • Support during the process of selecting the dealers and paying agent.
  • Co-facilitation of meetings with banks/brokers and the French Central Bank.
  • Drafting of the sales credit memo for the dealers.
  • Preparation of agent contracts in collaboration with Umicore’s internal legal advisor.
  • Recommendations on inaugural pricing and additional issuances.

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