Corporate Finance: Optimal Capital Structure for Growth

Corporate finance is the discipline concerned with how companies structure their capital, raise funding, and manage financial resources to support strategic objectives. In Spain, corporate financing instruments include bank credit facilities (governed by the Credit Institutions Act and Bank of Spain regulations), ICO credit lines channelled through the Official Credit Institute, private debt from alternative lenders operating under AIFMD, and equity instruments ranging from venture capital to capital markets issuances regulated by the Securities Market Act (LMV). A company's capital structure — the mix of debt and equity, its cost (WACC), and its covenant framework — determines both its growth capacity and its financial resilience, and is typically benchmarked against sector peers and reported in CIRBE, the Bank of Spain's centralised credit risk registry consulted by all lenders.

Our corporate finance team combines backgrounds in banking, advisory, and business management to deliver financing solutions that genuinely fit each client’s needs. We do not sell financial products: we design strategies.

Why Companies Overpay for Corporate Financing When They Negotiate Alone

Most Spanish mid-market companies are structurally disadvantaged in their financing relationships. They rely on one or two historical bank relationships, lack the market knowledge to benchmark the terms they receive, and negotiate without credible alternatives. Banks optimise their own risk-adjusted return — not the company’s financing cost or flexibility. The result is debt arranged at above-market rates, with covenants calibrated for the bank’s comfort, personal guarantees that should never have been required, and structures that constrain future growth or refinancing options. Every year this persists, the financial cost compounds. Our corporate finance advisers create the competitive tension that transforms those outcomes.

CIRBE, ICO Lines, and the Spanish Financing Ecosystem: What Lenders See Before They Meet You

Before analysing any credit operation, every Spanish bank consults the CIRBE — the Bank of Spain’s centralised credit risk registry that records your company’s total indebtedness declared across the entire financial system, including direct risk, indirect risk (guarantees), and undrawn credit lines. Your CIRBE may include items you have not thought about in years: open credit facilities, supplier guarantees, equipment leases. This is the first picture the credit analyst sees, and it shapes the entire subsequent conversation. Before initiating any financing process, we obtain and review your CIRBE to understand what lenders will see, anticipate their credit team’s questions, and prepare the financial narrative that places your borrowing position in the correct context.

ICO lines — instruments issued by Spain’s Official Credit Institute and channelled through partner banks — are a specifically Spanish financing mechanism that every company should evaluate in its funding strategy. ICO Empresas y Emprendedores covers fixed asset investment, working capital, and internationalisation. ICO Garantías SGR provides a Reciprocal Guarantee Society backing for SMEs that lack sufficient collateral to access standard bank financing. ICO Sostenible addresses investments with verified environmental criteria. ICO instruments are not always the optimal solution: a well-run competitive process with multiple market lenders frequently achieves equivalent or better conditions with less administrative complexity. We assess each situation independently and access ICO lines when they are genuinely the right tool.

How We Structure Your Corporate Finance Strategy

We act as independent financing advisers: no product, no distribution relationship, no incentive other than the quality of the outcome. Our process begins with a complete capital structure diagnostic: debt capacity, covenant headroom, WACC benchmarking against comparable sector transactions, and identification of structural inefficiencies. We design the financing strategy, prepare the information memorandum, and run a competitive lender process — engaging multiple banks, debt funds, and alternative financiers simultaneously to create genuine competition. We manage the bid process, lead the negotiation on all economic and structural terms, and coordinate the documentation through to financial close.

For companies in growth mode, the financing strategy funds the next stage of investment without constraining future flexibility. For businesses approaching an acquisition, we coordinate financing and deal structure in parallel to ensure they are optimised together. For companies with existing debt that no longer reflects current market conditions, we manage the refinancing process — proactively, not at renewal date — to capture the improvement in terms available when you negotiate from a position of choice rather than urgency. Our M&A and valuations teams work in close coordination to ensure that transaction structure and financing are optimised as a single whole.

Real Results in Capital Structuring and Financing

• Average margin saving of 1.8% versus the client’s self-negotiated terms — EUR 180,000 per year on a EUR 10 million facility.
• EUR 800M+ in financing arranged across bank debt, private debt, and equity transactions.
• Structural improvements beyond margin: extended maturity, reduced personal guarantees, covenant flexibility, and accordion facilities for future acquisitions.
• ESG-linked financing arranged with margin ratchets tied to verified sustainability KPIs for clients with credible ESG profiles.
• Refinancing mandates completed proactively — before renewal date — capturing improvement in terms from a position of choice.

Corporate financing in Spain operates within the framework of the Capital Requirements Regulation (CRR) and Bank of Spain supervisory guidance on leveraged transactions. Alternative lenders — private debt funds, business development companies, credit opportunity funds — operate under AIFMD and have significantly expanded their presence in the Spanish mid-market since 2015, creating a genuinely competitive lending market that most companies have not yet accessed. ESG-linked instruments — green loans and sustainability-linked bonds — are governed by the LMA Green Loan Principles and ICMA Sustainability-Linked Bond Principles and require verified KPI frameworks to access preferential pricing. The integration of tax planning and financing structure is essential: debt service, interest deductibility, and the interaction with the thin capitalisation rules under Article 16 LIS must be part of every capital structure analysis.

Corporate finance in Spain: the advisory landscape

Corporate finance advisory in Spain encompasses a broad range of services — from structuring the first institutional funding round for a growth company to advising a listed group on a strategic disposal or capital markets transaction. The common thread is financial engineering: identifying the structure, timing, and counterpart that maximises value for the client within the constraints of the Spanish regulatory and market environment.

Spain’s capital markets ecosystem has matured significantly over the past decade. BME Growth (formerly MAB) provides a lower-cost listing route for Spanish SMEs, the Alternative Fixed Income Market (MARF) offers access to institutional debt investors, and the European growth company SPAC market has created new acquisition financing possibilities. Understanding which instrument is appropriate for which company at which stage is the core advisory competence.

Debt advisory: structure, markets, and lender relationships

For established businesses seeking to optimise their capital structure, debt advisory encompasses three dimensions:

Leverage analysis: determining the appropriate debt load for the business based on cash flow predictability, asset base, and strategic flexibility requirements. Over-leveraged companies constrain their ability to invest; under-leveraged companies leave return on equity on the table.

Instrument selection: bank term loans and revolving credit facilities remain the dominant instruments for Spanish SMEs, but the MARF, EIB/ICO facilities, and private credit funds offer alternative or complementary sources that can materially improve pricing and terms. For real estate or infrastructure-intensive businesses, asset-based lending and sale-and-leaseback transactions can release trapped capital efficiently.

Lender negotiation: our established relationships with Spanish and international banks — BBVA, Santander, CaixaBank, SABADELL, and leading international lenders — allow us to run competitive processes that give clients genuine leverage in terms negotiations. Covenant structures, margin ratchets, and security packages are areas where experienced advisers add measurable value.

Equity advisory and capital raising

For growth companies seeking equity financing, our advisory services cover the full capital raise lifecycle:

• Investment materials: business plan, financial model, investor presentation, and management accounts prepared to institutional standards.
• Investor targeting: identification of appropriate investor types — strategic investors, financial investors, family offices — based on the company’s sector, stage, and strategic objectives.
• Process management: structured competitive process designed to generate multiple offers and preserve negotiating leverage.
• Term sheet negotiation: preference share terms, anti-dilution provisions, board composition, information rights, and exit mechanics.
• Closing coordination: working alongside legal counsel to achieve financial closing within the agreed timeline.

Our private equity team provides specialist advisory for transactions involving financial sponsors.

Project finance and infrastructure

For infrastructure, renewable energy, and real estate development projects, project finance structures — non-recourse or limited-recourse debt secured against project cash flows rather than sponsor balance sheets — are frequently the optimal financing solution. We advise sponsors, developers, and lenders on financial model construction, bankability assessment, debt structuring, and risk allocation between equity and debt investors.

Spain’s renewable energy sector has generated significant project finance activity over the past five years, with solar and wind projects requiring sophisticated debt structures to optimise IRR for equity sponsors. Our team has direct experience in this sector, coordinating with legal, technical, and insurance advisers throughout the due diligence and structuring process.

Integration with M&A and transaction advisory

Corporate finance advisory does not exist in isolation from mergers and acquisitions or valuations work. The financing structure for an acquisition determines the ultimate return on equity; the valuation methodology determines the price range within which a transaction is accretive. Our integrated team handles all three dimensions in a coordinated manner, ensuring that the financial arithmetic of any transaction is internally consistent from the outset.

Contact our corporate finance team for an initial conversation about your capital structure or transaction objectives.