Non-current financial assets

Non-current financial assets

Set out below are movements at 31 December 2007 and 2006:

Non-current financial assets 2007

  • The most significant item in Available-for-sale financial assets IS BAA's 4.19% shareholding in National Air Traffic Services Group (NATS), amounting to 63.74 million euro (72 million euro at 31 December 2006). Financial assets held for sale by the company APP totalling 65 million euro were also transferred during the year. 

  • The item Loans and receivables of infrastructure projects relates to receivables under UK contracts concluded by Amey subsidiaries for the maintenance and refurbishment of certain infrastructures in which the project company recovers the investment by collecting a number of deferred amounts comprising fixed and variable portions depending on the services and the availability of the asset for use.

The main balance of 1,283 million euro (88% of the total) relates to the company Tubelines, which holds a contract to maintain and refurbish three London Underground lines. The debtor is London Underground, an AA-rated public that reports to London City Council.

These receivables bear interest. The interest is calculated by discounting the deferred amounts at the average rate for the debt that finances these projects. An increase/reduction of 50 basis points in the interest rate applied to these receivables would have an impact of +7/-7 million euro on financial results.

This item Loans and receivables also includes the balances of the concession holder Sociedad Concesionaria de Prisiones Lledoners assigned to the construction business; these amounts will be recovered from the administration in exchange for services rendered or investments made under a concession contract, amounting to 40 million euro.

Maturities of the most significant loans and receivables of infrastructure projects are analysed below:

Non-current financial assets 2006

  • The item Restricted cash includes deposits securing bond issues totalling 273 million euro (329 million euro in 2006), the main balance relating to the ETR 407 toll road (206 million euro). The above-mentioned balance includes investments of 110 million euro (159 million CAD) held by the company 407 International Inc in asset-backed commercial paper (ABCP).  The vehicles that issue these short-term, AAA-rated instruments invest their funds on a long-term basis. This mismatch has given rise to illiquidity, causing their suspension from trading in August 2007. As a result of the suspension, a committee was formed to work on a restructuring proposal, which has not yet been completed. The company's balance includes 149 million CAD (103 million euro) that will be restructured.  Consequently, the company has measured these assets using generally accepted estimation techniques, having recognised a decline of 15 million euro (22 million CAD) in their value at 31 December 2007, in financial results. The impact on consolidated net income amounts to 8 million euro.

Finally, the item Other receivables and other held-to-maturity investments includes the following amounts:

1. Receivable of 91 million euro maturing in 2011 for the sale of Budapest Airport, classified as a non-current balance under IAS 39.

2. Investments in Economic Interest Groupings (EIGs) relating to Ferrovial's shareholding in nine EIGs, totalling 78 million euro, which are engaged in an asset leasing activity managed by a non-Group company that retains the majority of rewards and is exposed to the risks relating to that activity. These groupings have availed themselves of tax incentives provided by Spanish legislation and their results are recognised in the caption "income tax" in the consolidated income statement.

3. Non-current loan of 100 million euro (50 million euro at 31 December 2006) granted by Emesa, a subsidiary of Ferrovial Servicios, to the company Madrid Calle 30, S.A.

4. Fully-provisioned account receivable of 250 million euro relating to the deferred payment of 20% of the gain on the sale of the real estate business to Promociones Habitat.

5. Loans totalling 40 million euro granted by Cespa to its customers.

Fair values of assets


The discounting of asset cash flows using a market interest rate is deemed to approximate their carrying amount. The difference between the carrying amount and fair value of the assets is not therefore significant.