According to Genç, the main risk for the entity in Turkey does not lie in the recent dismissal of the Turkish Central Bank governor, but in foreign currency operations, something that the entity can handle “without problems” as it is a long-term investor. The main risk for the entity in Turkey does not lie in the recent dismissal of the Turkish Central Bank governor, but in foreign currency operations.
IAG Group announced on Tuesday that it has signed a revolving credit facility with a syndicate of banks for an available amount of $1.755 billion. The facility will be in operation for a period of three years plus two one-year extension terms at the convenience of the lenders. The credit line is available to the Aer Lingus group airlines, British Airways and Iberia, each of which has a separate borrowing limit within the overall credit facility. IAG continues to have a strong liquidity position, with an estimated total of €10.3 Bn at March 31.
Abengoa would have demanded the Solvency Support Fund for Strategic Companies from the Spanish government, a tool designed to help companies affected by the pandemic, for the rescue of its company Abenewco 1, to which it transferred the most valuable assets and activities of the broken parent company. The group would try to preserve these assets and to keep operating a subsidiary in which almost 13,000 employees are still working.
Telefónica has been awarded 40 MHz blocks in the 3.6 GHz band and 20 MHz in the 700 MHz band in the latest spectrum auction in the UK. This is the second one held in that country to accelerate the deployment of the new mobile technology. To do so, it has had to pay £448 M (near €532 M). This amount is much lower than initially estimated by the market, which had calculated that Telefónica’s investment in new spectrum in the UK would amount to £700 million (approximately €820 M).
Banco Sabadell | A federal court in Mexico has temporarily suspended the government’s legislative reform for the electricity sector. The reform would prioritise energy production by state-owned company CFE when it comes to feeding energy into the grid. In turn this would harm private renewable generation firms which, by producing more cheaply, would enter the market earlier. The impact of for the Spanish firms with presence in the Mexican market, Iberdrola, Acciona and Naturgy is limited.
The telecom operators Movistar, Orange and Vodafone have agreed to form an alliance to bid together for the deployment of 4G and 5G mobile networks in rural areas that will be financed with European reconstruction funds. Specifically, Movistar, Vodafone and Orange would build between 3,000 and 4,500 new radio sites, adding an extra 15% and 23% to the existing ones.
Inditex’s results in the year of the pandemic have shown an annual drop in profit and revenues of 70% and 28%, respectively, although the counterpart for the company has been the rapid conversion of its business model to the online environment, with internet sales growing by 77%. On the other hand, Inditex’s Board of Directors will propose a €0.70 per-share dividend at the Annual General Meeting scheduled for July. It will consist of an ordinary dividend of €0.22 and an extraordinary dividend of €0.48 per share.
Procurement of civil works by the Ministries of Transport and Ecological Transition fell last year by 57%, bringing it back to 2015 levels. The company which benefitted most was ACS, which topped the rankings of both ministries, with a total portfolio of €279Mn. The low activity led a non-civil construction company such as Siemens to take second place (€133Mn), thanks to a railway signaling contract.
Iberdrola has agreed a public-private partnership with Seat and the Spanish government to build a battery factory for the electric car in Catalonia, specifically in the city of Martorell, where the automaker has its factory. However, this alliance could be open to other partners. The sources quoted in some media suggest that the investment would be around €6.8 Bn and that the project is likely to receive part of the resources from the European recovery fund.
Upon completion of the transaction, Telefónica and Caisse de dépôt et placement du Québec will each hold 50% in FiBrasil under a co-control governance model. Telefónica Group’s 50% participation will be held through Telefônica Brazil (“Vivo”) and Telefónica Infra, the infrastructure arm of Telefónica Group, each holding a stake of 25%. Operating as a neutral wholesale company, FiBrasil is set to deploy and operate fibre-optic networks in selected mid-sized cities across Brazil outside the state of Sao Paulo.