- The deal was oversubscribed 7-fold, evidencing strong investor interest in the company
- It enhances Ferrovial’s sound financial position: €7,541 million in liquidity at end-September
Ferrovial has successfully completed a €500 million 8-year bond issue at 90 basis points over the mid-swap, i.e. a coupon of 0.54%. The deal was oversubscribed 7-fold, highlighting strong investor interest in the company.
This issuance enhances Ferrovial’s sound financial position — it had a record €7,541 million in liquidity at the end of September — and enables it to benefit from the current low interest-rate environment.
The company plans to allocate the funds to general corporate needs.
The bond is eligible for the European Central Bank’s corporate sector purchase programme (CSPP), which targets qualifying investment-grade euro-denominated bonds issued by non-bank companies established in the Euro area.
It is the company’s second deal of this type so far in 2020. In May it placed a €650 million 6-year bond at 1.382%, followed by a €130 million tap in June.
Ferrovial’s debt has a BBB investment grade rating with a stable outlook from Standard & Poor’s, ratified recently in a report in which S&P highlighted the company’s strategy and financial strength. The company also has a BBB rating, stable outlook, from Fitch Ratings.