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CREDIT SUPPLY: Redeia (NR/BBB+/BBB+): New Issue FV Analysis

CREDIT SUPPLY
  • IPT: Redeia EU500m WNG 8Y Green MS+100 Area.
  • We see FV at MS+65a.
  • Existing REESM bonds are issued from Red Electrica OpCo and rated one notch higher; this issuance is HoldCo. The A-/BBB+ utils average rating differential is 20bp. We think 15bp is appropriate here given REESM trades well inside average. 5Y Red Electrica FV is around 50bp. 65bp also puts this in line with IBESM (Baa1/BBB+/A-).

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