Adif Alta Velocidad Raises EUR 1.5 Billion Through Dual-Maturity Bond Issue, Enhancing Sustainable Finance Profile

Taking advantage of the opening of the financial markets, Adif Alta Velocidad (Adif AV) has made # a simultaneous issue in two different maturities, 5 and 10 years, for a combined volume of EUR 1,500 million. This is the first time that the public entity has developed this strategy, which aims to broaden its investor base and diversify its investor profile.

The 5-year bond - for a total of EUR 700 million - has an annual coupon payment of 3.25% and a spread over the Treasury of 48 bp (two bp below the initial issue price). In the last issue in June, at the same term (5 years), the coupon paid was 3.5%.

The 10-year bond placed - for EUR 800 million - has an annual coupon of 3.65% and a spread over the Treasury of 46 bp (two bp below the initial issue price). The last time Adif AV issued at this term was in April 2023 and the coupon was 3.90%.

The placement - whose main objective is to attend to debt maturities - has counted with the participation of 97 different investors and a total of 160 orders, 66% more than in the previous issue in June 2023, for a total volume of EUR 3,355 million, which means an oversubscription of 2.4 times the amount awarded.

Demand was very broad and diverse, with the participation of investors interested in different maturities. As in previous issues, international investors accounted for 56% of the total for the 5-year bond, 25% of which corresponded to investors from countries such as Germany, Switzerland, or the Nordic countries, 15% from the United Kingdom, and the rest from Italy, France, and Luxembourg. In the 10-year bond, international investors accounted for 50% of the total, with 29% from countries such as Germany, Switzerland, or the Nordic countries, 10% from the United Kingdom, and the rest from Italy and France.

Adif AV thus keeps its sources of financing diversified. On this occasion, the issue has been made in standard format, although it maintains in full its commitment to sustainable financing; an area in which it is a pioneer, being the first Spanish state-owned public company to issue 'green bonds' - it has been doing so since 2017; and is a national and European reference issuer with a total of EUR 4,000 million currently in circulation.

Adif AV's strategy is aligned with the United Nations Sustainable Development Goals (SDGs). Specifically, the construction and maintenance of high-speed lines have a positive impact on goals 9 (Industry, Innovation, and Infrastructure), 11 (Sustainable Cities and Communities), and 13 (Combat Climate Change and Its Effects).

Adif AV has been a pioneer among European infrastructure managers in the implementation of a Certified Environmental Management System (ISO: 14001 standard) and has launched its Plan to Combat Climate Change 2018-2030, which envisages the reduction of GHG emissions and energy savings, as well as greater resilience of railway infrastructures.

 

Source: Adif AV