In the first half of the period we restructured and refinanced our corporate debt.

First, the company made early repayment of the two syndicated loans which had funded the acquisitions of Madrileña Red de Gas and Madrileña Red de Gas II in 2010 and 2011, respectively. The interest rate hedges linked to this financing to above were also terminated.

Secondly, to secure funds for early repayment of the two bank loans and termination of the hedging instruments, we launched bond issues to a value of €500 million and €275 million, maturing in September 2018 and December 2023, respectively.

The bonds, issued by Madrileña Red de Gas Finance BV, a Dutch-registered company wholly owned by the sole shareholder of MRG, are guaranteed by Madrileña Red de Gas and were given effect under a Euro Medium Term Notes (EMTN) program registered with the Luxembourg Stock Exchange on 1 August 2013.

In addition, as part of the drive to restructure the company’s financial debt, the subordinated loans granted by MSIP Goldfinch BV to finance the acquisitions referred to above were paid off by means of a capital increase funded by the offset of the outstanding debt , fully allotted to the sole shareholder of the company MSIP Violin BV.

Favorably received in capital markets

In the second half of 2013, Madrileña Red de Gas made its debut on the European capital markets with two bond issuances, to a value of €500 million and €275 million, maturing in 2018 and 2023, respectively. The robustness of the company’s creditworthiness is borne out by the fact that both issuances qualified for investment-grade ratings from two international credit rating agencies, Standard & Poor’s and Fitch. The bondholders, including financial institutions that manage the assets and pensions of thousands of European savers – some of which are based in Spain – have become long-term partners of MRG, sharing in the company’s earnings. The proceeds of the bond issues help finance sustained growth for the benefit of present and future generations.