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INSTITUTIONAL INVESTORS - Corporate Finance :: Commercial Paper

Commercial papers are short-term (i.e. they mature within a year) promissory notes issued by a corporate entity to obtain financing. It can be secured or unsecured. However, the most common maturities are from 30 to 90 days. Commercial paper is often used to finance working capital needs, short-term projects or used as bridge financing until funding is received.

Facts about FGFS Commercial Paper

  • Available in Ja$ and US$
  • Commercial Paper investments help companies meet their cash flow needs or finance special projects while providing clients with higher interest rates
  • Issued by Blue Chip Caribbean Companies
  • Offers higher than average money market returns
  • Provides the flexibility of encashing after the agreed tenure
  • Provides diversification of investment portfolio
  • Background research regarding issuing companies available upon request
  • Withholding tax of 25% on interest returns

DOCUMENTATION REQUIRED FROM ISSUER:

The following information will be required, prior to FGFS making a firm offer, to structure and arrange short term obligations:

  • 3 – 5 years Audited Financials
  • Interim Financials, once three months have passed, since the financial year end
  • Financials should include cash flow statements
  • Statement of all liabilities, disclosing term to maturity and whether the liabilities are secured or unsecured. The Security should be disclosed.
  • If the Note will be secured, kindly provide an independent valuation of the asset
  • Projected cash flows for up to one year
  • Purpose of the Facility
  • Copy of certified board resolution, authorizing the proposed borrowing
  • Overview of the business lines, with a discussion of the company's strategic medium term plan (2 - 5 years)
  • Curriculum Vitae of the Principals - Board of Directors & Senior Managers
  • Memorandum and Articles of Association (indicate whether or not the company has the legal capacity to borrow)
  • Country of Incorporation.
  • Country in which the company conducts business.
  • Name of shareholders and % ownership of shareholders with shareholding of 10% or more.
  • Tax Residency of Issuer

Find out more about your Commercial Paper when you call us at 1-888-2-INVEST(468378) or email us atfgfscsr@gkco.com.