Ferrovial has successfully priced a €500 million (US$ 588,49 million) perpetual hybrid bond. The issue will pay a 2.124% annual coupon until 14 May 2023. Subsequently, it will pay a fixed coupon equal to the applicable swap rate plus a spread of 2.127% until 14 May 2043 and of 2.877% thereafter. The swap rate will be updated every five years.

The company announced it has plans to allocate the funds to general corporate needs.

The order book was very diversified, and the deal was extremely well received by international investors. Over 90% was placed outside Spain, notably in the UK, Ireland and France.

Fitch and Standard & Poor’s are expected to assign a BB+ rating to the bonds, two notches below Ferrovial’s corporate debt rating, as is standard for hybrids.

Ferrovial successfully completed two €500 million 3.375% senior bond issues in January 2013 (5 years) and May 2013 (8 years) In 2014, it issued a €300 million (US$ 353,09 million)10-year senior bond paying a 2.5% coupon. And in 2016, Ferrovial placed a €500 million 6-year senior bond at 0.375%, the lowest yield achieved in Spain for that maturity. In March 2017, Ferrovial placed a fifth senior bond: €500 million at 8 years paying 1.375%.

Fitch and Standard & Poor’s rate Ferrovial’s corporate senior debt at BBB, with a stable outlook.

Ernesto López Mozo, CFO of Ferrovial, commented about:

“We decided to issue hybrids because of their current low cost and in order to expand our investment capacity, since they have a high equity component.”