- The liquidity line, from a syndicate of 16 banks, factors sustainability criteria into the price.
- It replaces the 2015 line, with a significant reduction in funding costs, while extending maturity to 2023, optionally to 2025.
- The amount of the line has been reduced to €900 million.
Ferrovial has announced the signature of a liquidity line with 16 financial institutions, amounting to €900 million for five years, down from the current €1,250 million facility. The deal not only extends maturity and reduces funding costs, in line with Ferrovial’s strategy, but also incorporates ESG (Environmental, Social, Governance) criteria.
“This is the first time the Company has arranged funding in which the spread is based on its sustainability achievements. Based on the commitment by all areas of the Company, Ferrovial has been a member of the leading sustainability indices for the last 15 years, including the Dow Jones Sustainable Index and FTSE4Good. Under this deal, positive outcomes in sustainability are reflected in the funding cost,” said CFO Ernesto López Mozo.
The transaction arranged with a syndicate of banks translates improvements in the company’s environmental, social and governance ratings into its funding costs.
This line matures in July 2023. The funding cost has also been reduced, since the spread is now 15 basis points, down from 35bp under the previous arrangement.
Ferrovial is a member of a number of sustainability indexes. Late in 2017, it was confirmed for the 16th consecutive year in the Dow Jones Sustainability Index (DJSI), and was included in the DJSI Europe and DJSI World indexes. It also strengthened its position in favor of sustainability, as it has been in the FTSE4Good index since 2005 (and in its Spanish version, FTSE4Good IBEX, since 2008), and the Carbon Disclosure Project (CDP)and STOXX since 2010, evidencing its firm commitment to Corporate Responsibility. Rating agency MSCI granted Ferrovial its highest rating, AAA, early in 2018.