Pursuant to the Consolidated Text of the Spanish Securities Market Act (Texto Refundido de la Ley del Mercado de Valores), FERROVIAL, S.A. (the Company or Ferrovial) communicates the following:
Ferrovial has stablished an Euro Commercial Paper Programme in a maximum amount of outstanding balance of up to one thousand million euros (1,000,000,000€), that has been registered in the Irish Stock Exchange. Under this programme the Company may issue short-term debt with maturities ranging from 1 and 364 day, thus enabling Ferrovial to diversify its funding sources.
The Programme is directed by Banca March, S.A. acting as the arranger.
Ferrovial, founded in 1952 in Madrid, is currently one of the leading infrastructure and service operators worldwide.
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Commercial Papers are an efficient source of funding
Commercial Papers are short-term money-market securities used as a funding source by financial institutions, as well as governments, supranational agencies and mid and large corporations.
For corporate issuers, Commercial Papers are an extremely efficient funding source, that is complementary to banking facilities and credit lines. It is an efficient working capital solution via Debt Capital Markets.
Commercial Papers are issued under a shelf programme, that has an annual validity (renewable) and a predetermined maximum outstanding size. Notes under a CP programme may be issued at a discount or at a premium, they may bear fixed or floating rate interest. Although CPs, most usually, carry an implicit coupon, they are issued at discount and mature at par (100%)
Maturity of notes ranges from 3 days to 24 months for Pagarés Programmes and from 1 to 364 days for ECP (European Commercial Paper Programmes).
Commercial Papers are multi-currency instruments that can be issued in different currencies; predominantly in EUR, USD, CHF and GBP. They have a minimum denomination of €100K and are intended for wholesale institutional investors, both national and international.
Source: Ferrovial (see the entire post)
