Overview

• Spain’s Council of Ministers is set to authorize a €75 million convertible loan from SEPI on July 29 to join a Basque consortium in shoring up Talgo’s finances
• The SEPI loan will likely be convertible into shares, giving the state an estimated 5 percent to 10 percent equity stake in the high-speed train manufacturer
• A coalition led by Sidenor and regional foundations will match with €75 million, together covering about €190 million of Talgo’s imminent debt maturities
• The €150 million funding package unlocks the planned formal purchase of Trilantic’s 29.7 percent holding, expected to close between September and October
• It supports Talgo’s negotiations with Deutsche Bahn over delayed train deliveries and implements a payment deferral for Renfe’s €116 million fine until 2033–2040