September 24, 2024 10:04 GMT
Ile-de-France Mobilités (IDFMOB; Aa3 Pos/NR/A+ Pos) 15Y FV (
TRANSPORTATION
WNG €500m 5Y Green Mandate No IPT vs. FV +108
- State funded public transport authority for the region. Standalone rating is A2/NR/BBB+ (+2/NR/+3 uplift). French gov. is rated Aa2/AA-/AA- and the region issues flat to sovereigns; ticker IDF.
- Debt has ballooned from €2b pre-covid to over €10b. Capex is expected to run at €4.5b this year; 53% of that debt financed, rest from operating income. Nearly half of revenues are from mobility taxes (rates negotiated with gov.) while only 1/3 comes from fares.
- It has €1.7b in funding needs remaining this year; likely to see a revisit. Another ~€3b in green bond issuance expected next year.
The curve trading flat to EJ Rail - a private co with itself ballooning debt and 1-notch lower rating - is a tad surprising. Roadshow here.
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