Watson Farley & Williams (“WFW”), a leading international law firm, has once again advised  ADIF-Alta Velocidad (“ADIF-AV”), the Spanish high-speed rail infrastructure administrator, in its latest venture into the debt market, with the issuance of €1 billion worth of bonds in the Spanish AIAF market.

The ADIF-AV bond placing via a syndicate of international banks -Barclays Bank PLC, Banco Santander, S.A., BNP Paribas, HSBC Bank plc and Société Générale – is for bonds amounting to €1bn with a 10 year term at an interest rate of 1.875%. The bonds are under an European medium term notes (EMTN) program registered by the Dublin Stock Exchange (Ireland), on April 30 2014, for a maximum amount of €3bn.

ADIF-AV is a public company attached to the Spanish Ministry of Public Works, and is the administrator of the high-speed railway infrastructure in Spain.

WFW advised ADIF-AV in this second issuance of bonds under the EMTN program, so that ADIF-AV can repay in full a bridge loan used to finance the construction of high-speed railways in Spain.

WFW previously advised ADIF-AV on its inaugural €3 billion EMTN issuance programme and its debut €1 billion issue under said programme, which were listed on the Irish Stock Exchange.

The WFW team was led by WFW Madrid Head of Finance, partner Rodrigo Berasategui, with assistance from associate Juan Vicente Barquilla.

Partner Rodrigo Berasategui commented: “We are especially proud of having advised ADIF-AV, as this is a highly complex, pioneering deal as it is the first Spanish public company that has placed, with great success among investors, bonds issued in the Spanish market under an EMTN program registered abroad,  at a time when the forecasts for the financial markets are constantly changing.

“From the legal perspective, the deal provided complexities in relation to the special nature of the issuer, as well as from the pertinent regulations in the different jurisdictions which were applicable to this transaction; bonds admitted to trading in AIAF Fixed Income Securities Market in Spain are subject to English law, in addition to having to abide by Spanish law,” he said.