DAVOS, Switzerland (Reuters) - Spain’s Ferrovial (FER.MC) has no plans to tap equity markets in 2010, though its British airport operator BAA will continue to raise cash through bond issuance, chairman Rafael del Pino said on Friday.
Del Pino told Reuters BAA tapped bond markets “continuously” and did not have a target.
“BAA no doubt suffered from regulatory uncertainty,” he said on the sidelines of the World Economic Forum. “Now this is gone and we have a good rating. So now we’ll tap the markets.”
Asked whether Ferrovial would consider selling a stake in assets like the Indiana Toll Road, he said the company would sell mature assets from which it had extracted the main value.
“These are mature assets. They will eventually, as we’ve extracted the value that is there through improving management and improving the traffic flow, they will certainly come partly into the market,” he said.
Asked if it would sell a controlling stake, he said that had not yet been decided.
A Ferrovial spokesman later clarified that Del Pino was talking about the company’s general policy on mature assets and there was no specific plan to sell the Indiana Toll Road. He noted that Ferrovial had recently sold its Chilean toll motorway and had other road assets in its portfolio.
Del Pino also said bidding for infrastructure had become less competitive as purely financial players were forced out by the credit crisis, leading to improved returns.
“It is getting a bit better,” he said. “Now it is more for the industrial players like us. The deals have a better return.”
Reporting by Paul Taylor