Swedish rolled aluminium firm Gränges AB announced yesterday a new commercial paper program that will soon join the firm’s other financing programs.
According to the relevant press release, Gränges will soon issue short-term paper in the amount of SEK1.5 billion (US$187 million), with a term of issue of under one year.
Gränges CFO and deputy CEO Oskar Hellström explained that the issue is the firm’s first move of a foray into a new debt-financing market.
“The primary purpose of the program is to take a first step into the Swedish debt capital market. Commercial papers are a complement to Gränges other funding, and will help optimise the capital structure as Gränges implements its strategy”
Gränges gave no indication as to a date when they would begin the program, but the firm did state that the issuance would not have an effect upon the present year’s finacial costs.
Begun in 1873 in Stockholm, Sweden as Trafik AB Grängesberg-Oxelösund, Gränges AB was resurrected in 2013 as a private company specializing in rolled aluminium heat exchangers. It employs almost 1,000 employees at the present time at two plants – one in Finspång, Sweden, that opened in its present configuration in 1972, and a second in Shanghai, China, opened in 1996. The firm boasts an annual sales total of SEK10 billion (US$1.09 billion).