Red Eléctrica €500 million 1.125% notes issue

Overview:

• Red Eléctrica—a partly state-owned and public limited Spanish corporation that operates the national electricity grid in Spain—has made a €500 million 1.125% notes issue.
• This was part of an intermediated exchange, whereby BNP Paribas offered to purchase notes from holders of Red Eléctrica notes who tendered their notes to it. The purchased notes were subsequently transferred by BNP Paribas to Red Eléctrica in exchange for the new notes issued by it in Phase II of the transaction as well as cash. 
• As the transaction relates to the Spanish electricity sector, the guarantors are heavily regulated companies that must ensure that the use of proceeds complies with the electric legal regime.

Adam Majeed - Regional editor