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Merlin Properties

Companies, Ibex, Spanish economy 21st November 2022

Merlin Properties subscribes to a 5-year syndicated loan for € 600 M; this assures the repayment of all debt maturities to 2027

Renta 4 | According to information provided to the Stock Market Regulator, Merlin Properties has subscribed to green corporate financing with various banks. This allows it to add 660 million euros to its disposable liquidity, reaching a total of 2 billion, and means that the repayment of all its debt maturities to 2027 is assured. The financing consists of a syndicated 5-year loan for 600 million euros with 5 lenders (BBVA,…

Telefonica

Companies, Ibex, Spanish economy 21st November 2022

Telefónica: a more bullish message on the telco sector than on other occasions

MS | The general feeling is that Telefónica’s message at the TMT 2022 was more bullish than on other occasions. The most important elements: Telefónica is managing the current volatile macro environment well. 2. A generalised hike in prices: the company’s prices are linked to inflation in Brazil, HISPAM and the UK. In Spain, the message has been very direct, speaking about raising prices to levels of inflation as well…

ACS

Companies, Ibex, Spanish economy 21st November 2022

ACS forms the consortium YTK with some US firms to build a factory in Ohio for electric vehicle batteries

Link Securities | Asian industrial firms Honda and LG Energy have commissioned the construction company Turner, a subsidiary of ACS, to build a factory for electric vehicle batteries in the county of Fayette, Ohio (US), according to today’s Cinco Dias. The initial budget for the installation is $3.5 billion (some 3.380 billion euros) of the $4.4 billion (some 4.245 billion euros) being considered for the whole initiative. ACS’ partners in…

Cellnex

Companies, Ibex, Spanish economy 20th November 2022

Cellnex will consider buybacks and distribute dividends when TowerCo generates positive FCFs in 2024

Morgan Stanley |The main issues dealt with on Cellnex’s panel of the TMT: Capital allocation is the priority: The company has announced that it will consider carrying out buybacks and distributing dividends when TowerCo generates positive FCFs in 2024. The next priority is to take advantage of BTS capacities/organic growth, which in the context of 5G offers new challenges. The “Greenfield” projects also have attractive yield profiles according to the…

Telefónica

Companies, Ibex, Spanish economy 19th November 2022

Telefónica has confirmed that it will raise prices an average 6.8% from Jan 2023

Norbolsa | Telefónica CEO, Ángel Vilá, has confirmed that in the next few days the company will officially announce an average rise in tariffs for Movistar clients in Spain of 6.8%. This will come into effect from January 2023. The rise in tariffs will not be lineal, but will vary according to the services contracted. Up to now, the Spanish telco was implementing its strategy «more for more». This consisted…

Markets

Companies, Markets, Spanish economy 19th November 2022

Downward revisions in Europe have only just begun; usually takes 7-8 months until they touch bottom

Morgan Stanley | Q3’22 results have been very similar to those of Q2’22 and Q1’22, substantially better-than-expected in terms of revenues and also strong in terms of profits, although to a lesser degree. There was a fairly negative skew in publications, with those stocks which published better-than-expected figures rising very little, while those which presented worse numbers fell sharply. Financials and energy were the two sectors which published better figures,…

Repsol

Companies, Ibex, Spanish economy 18th November 2022

S&P hikes Repsol rating to BBB+ from BBB after company strengthens balance sheet amid high raw material prices

Renta 4 | S&P has raised its rating on Repsol from BBB to BBB+, while maintaining its A-2 in the short-term, with a stable outlook. The ratings agency has based its move on a backdrop of high raw material prices, divestments and Repsol’s prudent financial policies to strengthen its balance sheet and improve credit measures. S&P flags that the market situation will favourably affect the company throughout the cycle. This…

Heathrow Ferrovial

Companies, European economy, Ibex 17th November 2022

Ferrovial eyes participation in new Warsaw airport, a project valued at €8 B

Bankinter | Ferrovial is interested in participating in the development of the new airport in Warsaw, which will be located between the Polish capital and the city of Lodz. The project is valued at around 8 billion euros and the Spanish firm has put itself forward to invest in it, along with other partners. Analyst team’s view: Good news for Ferrovial. The operation would make strategic sense, as it would…

iberdrolaTC

Companies, Ibex, Spanish economy 17th November 2022

Iberdrola, attractive growth and high visibility; Buy (T.P. 12,50 vs 11,90 euros/share)

Bankinter | Upward revision to targets in the Strategic Plan 2025. Attractive growth and strong visibility in results. Iberdrola has revised upward the objectives in its Strategic Plan 2025. It now expects EBITDA in 2025 of 16.5-17.0 billion euros vs 15 billion previously, and NAP of 5.2-5.4 billion euros vs 5 billion previously. Average annual growth rate in EBITDA and NA`P in the period 2022-2025 will be between 8% and…

Private debt

Companies, Markets, Spanish economy 16th November 2022

Gross issues could grow 8% in 2023 to €830 B; with corporate issues rising 20%, banks up 1%

Santander Corporate & Investment | The rally in the secondary market will boost the primary market. This is a phenomenon which is not new. There are clear examples in 2009, 2012, 2019 and the second half of 2020, where the improvement in the markets translated into increases in gross issues of 115%, 78%, 37% and 17% respectively. We believe this pattern could be repeated in 2023, above all during a…