Santander issues a green bond for 1 Bn€ with a “midswap” more than 0.65%
Alphavalue | The bank aims to finance or re-finance green activities, social or sustainable.
Ibex
Ferrovial: sale of Services for 2 Bn€ would have impact of –2,5% on O.P.
Banc Sabadell | The bank guarantees of around 1 Bn€ held by Ferrovial´s Services Division (which we value at approximately 2.5 Bn€; ~7X EV/EBITDA) are complicating its sale and could lower its valuation to 2 Bn€ (vs 2.5 Bn€ rumoured).
MasMovil eliminates doubts about 5G entry: Buy (O.P. 25 euro/share)
MasMovil has closed a new agreement with Orange which includes both the mobile network (including 5G and extending it to 2028/2033) and Fibre to Home – FTTH – (including an additional 5.2 M UI) and at the same time has updates its estimates (2019/2020) extending them to 2021.
Endesa accelerates closure of coal-fired powerstations at cost of 1.3Bn euros
Renta 4 | Faced by the changing market conditions directly affecting the profitability of coal-fired power stations in Spain, Endesa´s board has decided to accelerate end of their production without expecting any impact on operating profits.
ACS cash flow profile is now more resistant
Santander Corporate & Investment | We reiterate our recommendation to Buy after revising our model with the aim of including the performance in the first quarter of 2019 and recent tendencies. We have lowered our new objective price (OP) for the close of 2019 from 4.7€/share to 42.5€/share mainly because the valuation at market prices of CIMIC (without recommendation) in our model.
Demand for steel is not recovering, but ArcelorMittal is doing its homework
Banc Sabadell | The demand for steel in Europe (40% EBITDA) is somewhat weaker than expected (the expected recovery in car making has not happened), which means price rises are not expected. However, ArcelorMittal has showed that it is doing its homework in reducing cash outflows, given a tight financial situation, which could lead to announcements of improved shareholder remuneration in 2020.
Mediaset: TV advertising market will fall -3% vs previous -1.5%
Renta 4 | Mediaset España has issued a communiqué on its results for July and August, again characterised by cost flexibility (savings of almost 20 million euros because of the absence of the world cup) and the reinforcement of incomes not depending on conventional ads.
CIE Automotive acquires the Italian company Somaschini for 5x ebitda
Cie Automotive will acquire 100% of the social capital of Somaschini S.p.A. The enterprise value is 79.6 million euros, equivalent to less than five times EBITDA for this year, and will be adjusted at closure of the deal depending on its indebtedness, as is usual in this type of operation.
Santander: 1.5bn hit to UK operation, without visible impact in the accounts
Bankinter | Santander UK has completed a revision of its UK operation, with a cut of 1.5 Bn€. This writedown is due to a deterioration in business perspectives (generation of future incomes) as a consequence of the severe regulatory environment and uncertainty about Brexit, which obliges it duplicate certain functions and, therefore, raise costs and reduce the expectations for the generation of profits.
Iberdrola will invest 480 M€ in construction of largest terrestrial windfarm in Latin America
Link Securities | Iberdrola, through its Brazilian subsidiary Neoenergia, will construct its largest terrestrial wind-farm complex in Latin America. Named Oitis it will be composed of a total 12 farms with a combined installed capacity of 566.6 MW.