VINCI has substantial leverage and capital needs, so hybrid bonds could be useful, but there are important trade-offs.

Key points:

- **Scale and leverage:** At year-end 2022, VINCI had total assets of about €112.0bn and equity of €29.4bn. Interest-bearing debt was substantial, including non-current bonds of €20.4bn, other non-current borrowings of €3.2bn, short-term borrowings of €6.4bn, and lease liabilities of about €2.1bn.
- **Strong operating performance:** Revenue rose sharply to €62.3bn from €50.0bn, and operating profit increased to €6.5bn from €4.4bn. Cash flow from operations was strong at €9.4bn.
- **Debt service capacity:** Net finance costs were €614m, while operating profit was €6.5bn, indicating good interest coverage.
- **Investment requirements:** VINCI continues to make large investments, with investing cash outflows of €5.3bn in 2022 and significant concession/intangible asset balances. Hybrids could help fund long-duration assets while protecting credit metrics.
- **Market conditions:** 2022 rates and credit spreads rose materially. Swap rates moved from near zero/negative levels to around 1.7%–1.9%, and corporate/hybrid spreads also increased. This makes hybrid issuance more expensive than in prior years.
- **Rating agency treatment:** S&P caps equity credit from hybrids at 15% of total adjusted capital. For a company like VINCI, using some of that capacity can support adjusted leverage and ratings, but maxing it out would increase coupon burden and refinancing/call risk.

Overall, VINCI is a strong, investment-grade infrastructure and concessions group with meaningful debt and long-term assets. It should use hybrids as a supplementary capital tool, but not aggressively up to the full S&P cap given higher 2022 funding costs and already solid cash generation. A **moderately high use** of hybrid capacity is appropriate.

<answer>75%</answer>