January 25 (SeeNews) - Slovenian white goods maker Gorenje [LJE:GRVG] said on Wednesday it has successfully completed its fifth consecutive issue of commercial paper in the amount of 40 million euro ($42.9 million) to obtain funds for seasonal financing of its operations.
The commercial paper, maturing on December 22, 2017, has the lowest interest rate to date of 1.30 percent p.a., Gorenje said in a Ljubljana bourse filing.
The issue contributes to the efforts to further cut Gorenje Group's finance expenses, and the substantial interest in commercial paper reaffirms investor confidence in Gorenje, the company noted.
The initially planned second round of subscription shall not take place as the entire amount of the issue has already been subscribed in the first round, Gorenje pointed out.
The bond was subscribed and paid for by 74 investors, in the combined total amount of 59.5 million euro.
"Due to excessive subscription, commercial paper was allocated proportionally to all subscribing investors who paid in the total nominal value of 40.0 million euro," Gorenje said. "The purpose of the commercial paper issue is to diversify the short-term financing sources, financing of operations with a pronounced seasonal dynamic, and optimization of financing costs."
In December, Gorenje announced it paid out 28.9 million euro to the holders of maturing commercial paper issued in February.
($=0.9300 euro)
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