Iberdrola refinances 5.3 billion in the largest credit line in its entire history

Iberdrola has refinanced 5.3 billion euros, signing the largest line in its history with a total of 33 international banking entities. The electricity company has placed the cost of the operation at the most competitive levels for the group, with prices similar to those of 2019, as reported in a statement.

This line is linked to the fulfillment of two sustainability objectives, such as the reduction of emissions by 2030 (scopes 1, 2 and 3) and the increase in the percentage of women in relevant positions. The energy company has stressed that the operation has been oversubscribed by more than 40%, “which demonstrates the bank’s strong commitment to the first utility in Europe by capitalization and the second in the world.”

BBVA acted as global coordinator and agent bank. The coordinators in matters of sustainability have been BBVA, Santander and Credit Agricole. With this agreement, more than 96% of the company’s credit lines are sustainable. The president of Iberdrola, Ignacio Sánchez Galán, highlighted that this line of credit “is another example of the solid confidence of the financial community in the company’s strategy, based on the creation of value through investment in the energy transition. “And financial discipline.” In addition, he highlighted that the operation “strengthens” the commitment to the company’s ESG objectives.

Subscribed for five years with the option to extend it for another two

Specifically, the subscribed line has a duration of five years, with an option to extend for two additional years and is multi-currency. The operation contributes to fulfilling its commitment to maintain optimal liquidity, which amounted to 20.2 billion euros at the end of the third quarter.

The cost of this line of credit is subject to the fulfillment of two strategic ESG objectives for the group. Firstly, the reduction of equivalent carbon emissions under scopes 1, 2 and 3, a fact that Iberdrola demonstrated makes it “a pioneer worldwide once again and demonstrates its ambition and appetite to lead the decarbonization process of the economy, as objectives that include scope 3 are not common in the market. Secondly, the increase in the percentage of women who occupy relevant positions in the company.

The operation margin will be adjusted annually

Likewise, the margin of the operation will be adjusted annually based on the achievement of said objectives: downwards (if they are met) or upwards (if they are not met). Iberdrola is committed to formalizing its debt instruments in a sustainable format. In fact, many of the credit lines were already focused on the contribution to the UN Sustainable Development Goals (SDGs), mainly on 7 (clean and accessible energy) and 13 (fight against climate change). The operation now signed also contributes to number 5 (gender equality and empowering the empowerment of women and girls).

The energy company has established itself as a global benchmark in sustainable financing, being the first global private group to issue green bonds, after becoming the first Spanish company to issue a bond of these characteristics in 2014. Currently, the group has almost €20 billion of live green bonds. Within the banking market, in 2016, the energy company also signed the first green loan for an energy company, for imports of 500 million euros. That operation was followed by various loan operations and lines of credit linked to sustainability criteria.