I'll analyze Ferrovial SA's financial position and determine the appropriate hybrid bond issuance level based on the provided data and S&P methodology.

## Key Financial Analysis

### Capital Structure (as of 2023-01-01)
- **Total Assets**: €26,284M
- **Equity**: €6,354M (€4,113M attributable to owners + €2,241M noncontrolling interests)
- **Total Liabilities**: €19,930M (€13,142M noncurrent + €5,378M current)

### Debt Composition
- **Noncurrent borrowings**: €10,776M
  - Infrastructure projects debt: €7,893M
  - Excluding infrastructure projects: €2,883M
- **Current borrowings**: €877M
  - Infrastructure projects: €74M
  - Excluding infrastructure projects: €803M
- **Total debt securities and bank borrowings**: ~€11,653M

### Key Observations

1. **Infrastructure-Heavy Business Model**: Ferrovial operates primarily in transportation infrastructure (toll roads, airports, etc.), with €13.67B in infrastructure investments (52% of total assets). This is a capital-intensive, long-duration asset business with predictable cash flows.

2. **Existing Hybrid Capital**: The data shows "Perpetual Subordinated Bonds" with negative movements of €8M in 2022 and €7M in 2021, suggesting minimal existing hybrid capital (likely being amortized/redeemed rather than issued).

3. **Equity and Leverage Metrics**:
   - Equity/Assets ratio: ~24.2%
   - Significant noncontrolling interests (35% of equity)
   - Parent company equity: €4,113M

4. **Profitability and Cash Flow**:
   - Revenue: €7,551M (2022)
   - Operating profit: €429M
   - Net profit: €302M (€186M attributable to parent)
   - Operating cash flow: €1,002M
   - FFO (funds from operations) can be approximated from cash flows

5. **Capital Intensity**: 
   - Heavy infrastructure investments of €784M in 2022
   - Significant ongoing capex requirements for concession-based assets

6. **Rating Considerations for Infrastructure Companies**:
   - Per S&P's Transportation Infrastructure methodology, FFO to debt is the preferred core ratio
   - Concession-based companies must deleverage before assets revert to grantor

### Assessment Against Guidelines

| Factor | Assessment |
|--------|-----------|
| Refinancing needs | Moderate-high; €877M current borrowings plus ongoing infrastructure needs |
| Capex intensity | High; infrastructure investments of €784M annually, plus maintenance |
| Leverage pressure | Moderate; significant debt but infrastructure-backed |
| Rating headroom | Moderately constrained by capital intensity |
| Current hybrid capital | Minimal/none (perpetual bonds being redeemed) |
| Cost environment | Rising rate environment (swap curves turned positive in 2022) |

### Detailed Reasoning

**Why not 0% or 3.75%?**
- Ferrovial has meaningful funding needs for its infrastructure portfolio
- The company is capital-intensive with long-duration assets
- Some rating optimization would be beneficial given the concession-based model

**Why not 15%?**
- No immediate material downgrade risk
- Not a transformational M&A situation
- Cost of hybrids in rising rate environment would be significant

**Why 7.5% fits best:**

1. **Moderate refinancing and acquisition needs**: The company has €877M in current borrowings and continues to invest €784M+ annually in infrastructure projects. The 2022 annual report shows active portfolio management with divestments (€429M) but also ongoing investments.

2. **Rating headroom moderately constrained**: Infrastructure companies with concessions need to maintain investment-grade ratings for access to long-term capital. The FFO/debt ratio is critical, and hybrid equity credit would improve this meaningfully.

3. **Hybrid issuance meaningfully improves adjusted leverage**: With ~€11.7B in debt and €6.4B in equity, adding hybrid capital at 7.5% of total adjusted capital (~€1.3B equivalent equity credit) would improve the equity cushion and financial metrics.

4. **Cost consideration**: While rates rose in 2022 (swap curves turned sharply positive), the cost increase would be "slight" relative to the benefit, especially for a BBB-rated infrastructure name where hybrid spreads might be manageable.

5. **Business model alignment**: Transportation infrastructure with long-term concessions is ideal for hybrid capital - stable, predictable cash flows match the perpetual/subordinated nature of hybrids.

6. **Maximum issuance constraint**: At 7.5% of total adjusted capital, with total adjusted capital roughly €18B (equity + debt), this implies ~€1.35B of hybrid equity credit, well within the €3B annual issuance cap.

The company doesn't have the distressed leverage profile warranting 11.25% or 15%, but has sufficient capital intensity and rating optimization potential to justify more than the minimal 3.75%.

<answer>7.5%</answer>