DEBT STRUCTURE

As of 30 September 2021, FNM Group's gross debt equals to 1,004 million euro. Of this amount, 90% is represented by bank loans, composed as follows:

- 62% Bridge Loan subscribed for the purchase of the majority share of Milano Serravalle-Milano Tangenziali (MISE);

- 23% bank loans of MISE;

- 5% loans from the European Investment Bank (EIB) for the purchase of rolling stock for the cross-border service.

The Group also has 240.3 million euro in cash. The Group adjusted net financial position1 equals to 776.5 million euro, while the net financial position equals to 734.4 million euro. Furthermore, as of 30 September 2021 the group has a liquidity headroom of 140 million euro in uncommitted lines. 

                                                                                                  

On 13 October 2021 the Group successfully placed a senior unsecured, non-convertible fixed rate bond for 650 million euro with a maturity of 5 years. This constitutes the inaugural Bond Issue in the context of FNM EMTN Programme for a total maximum amount of up to 1 billion euro, approved by the Board of Directors on 16 September 2021. The securities were placed at an issue price of 99.824% and will have a fixed rate with an annual coupon of 0.75% and an annual yield of 0.786%, corresponding to a spread of 88 basis points over the mid-swap reference rate.  The securities representing the bond have been assigned a Baa3 rating by Moody's and a BBB rating by Fitch, in line with those of the issuer.The bond issue was settled on 20 October, 2021. 

This transaction significantly changed the debt composition of the Group, which is illustrated in the graphs below.                                                                                                                                                                                                                                                                                                                                             

Financial debt2 composition as of 30 September 2021 and its expected evolution after the bond issue

 

 

The proceeds of the bond were used for the full upfront payment of the Bridge Loan and to maintain the adequate amount of liquidity to cover the operating needs and the investments.

The issue is consistent with the financial strategy of FNM, which aims to optimise the composition of the financial debt by increasing average debt life, diversifying the sources of funding and taking advantage of the opportunities offered by favourable market conditions.

 

1- Excluding the impacts of the timing of the collections of the contributions on financial investments for the renewal of the railway rolling stock and of the related payments made to suppliers, recognised in accordance with IFRIC 12. 

2- Gross debt= 1,004.2 million euro, excluding the non-current portion of debt on the financed investments equal to 12.6 million euro.

3- Only on bank debt and bond.

 

 

 

FNM S.p.A.
Registered office in Milan, Piazzale Cadorna, 14
Fully paid-up share capital of € 230.000.000,00

Registered to the Companies Register
Tax code and VAT no. 00776140154
C.C.I.AA. Milano - REA 28331

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