Assured Guaranty (Europe) SA (AGE), an indirect subsidiary of Assured Guaranty Ltd., has announced the successful guarantee of a €93.7 million loan to Metro de Madrid, S.A.
The 20-year, floating-rate loan, provided by Bankinter, S.A., will facilitate the acquisition of 40 new narrow gauge and 40 new wide gauge trains for Madrid’s underground network, specifically targeting lines 1, 6, and 8.
This marks AGE’s first transaction with Metro de Madrid, showcasing the value of their financial guarantee in enabling borrowers to issue long-term debt more cost-effectively.
Raphael de Tapol, Directeur Général of AGE, expressed satisfaction with the deal, highlighting its significance in strengthening the company’s presence across various sectors in the European market.
Raul Serrano, Director, Infrastructure Finance of AGE, emphasised the transaction’s importance as the first primary market deal with a bank beneficiary since the global financial crisis.
Having successfully provided credit protection in the secondary market, AGE sees opportunities in 2024 to engage in similar deals across diverse sectors.
Financial institutions are actively seeking ways to manage portfolio exposure and lend more capital-efficiently, presenting prospects for AGE in the coming year.
Based in Paris, AGE operates Assured Guaranty’s financial guarantee business in continental Europe and holds impressive credit ratings—AA from S&P Global Ratings and AA+ from Kroll Bond Rating Agency.
Legal counsel for AGE on this transaction was provided by Linklaters LLP in London and Madrid.
