Kinepolis issues Commercial Paper Program

*   Program Size of EUR 50 million designed to cover short-term funding requirements *   Backed by Syndicated Loan *   Diversification of debt financing *   Use of favorable conditions to further optimize interest costs on debt financing   Kinepolis Group NV issues a Belgian Commercial Paper Program in order to refinance short-term liabilities. The program size is EUR 50 million.   "Today Kinepolis solely relies on banks to fulfill its financing requirements, so starting a CP program as alternative source for funding is a logical next step. With the current favorable conditions in the market we can further optimize our financing cost and address a broader range of investors." says Henk Rogiers, CFO of  Kinepolis Group.   The issue is arranged by BNP Paribas Fortis.   Kinepolis owns the majority of its complexes, has shown good financial performance over the last years which has strengthened the balance sheet and has since 2007 a syndicated loan facility in place. This loan is used as backup line for this CP program.   The Commercial Paper Program is a flexible, non-banking instrument to finance short-term liabilities, comparable to a corporate bond with short-term maturity. The period to maturity is determined together with the investors, and ranges from one day to one year. This financial instrument provides investors with the opportunity to invest short-term available funds at a yield of Euribor plus spread. In turn, the company issuing the commercial paper gains access to short-term borrowed capital at favorable conditions.