Iberdrola reduces this year's debt maturities to less than 2,000 million euros
Iberdrola has managed to reduce its 2023 debt maturities to less than 2 billion euros after securing 4.855 billion euros of new financing and extending the maturity of 6.1 billion euros so far this year.
The Spanish company chaired by Ignacio Sánchez Galán got support in the market after having executed around 30 operations between maturity extensions and new financing during this course, as reported by the specialised economic information media Expansión.
In the first quarter of the year, the group placed 1,000 million euros in hybrid bonds, 309 million euros in bank bonds, signed 205 million euros in multilateral loans and 115 million euros in loans from development banks and export credit agencies (ECA), according to the documentation sent by the company to the National Securities Market Commission (CNMV).
During the second quarter, it issued senior bonds for 941 million euros, including the 850 million euros it placed on 4 July, in this case senior debt with a ten-year maturity, and agreed 242 million euros in bank loans, 1,152 million euros in multilateral loans and 91 million euros in loans from development banks and export credit agencies, according to the documentation provided.
Also to be taken into account is the EUR 500 million green loan granted by Citi Bank and partially guaranteed by the Norwegian Export Credit Agency (Eksfin). This is the first loan guaranteed by Eksfin to a Spanish energy company and has an average life of nine years with the aim of extending the duration of Iberdrola's debt at a competitive price. In addition, Iberdrola signed a bilateral loan of 300 million euros after 30 June, according to the consolidated interim financial statements filed with the stock exchange supervisor. The electricity company also highlighted the "scope for additional bank financing and access to new markets", as reported by the Europa Press news agency.
All these movements are part of the company's financing strategy, which is able to diversify its debt structure thanks to the confidence it generates in the markets due to its global position and its business and financial resources. The company's position is very good considering that it has liquidity of 20,290 million euros, as pointed out by Expansión, which also indicated that this liquidity base allows the company to cover its basic needs for 21 months, which would be 19 months in the event of risk.
The company also maintained its activity in the promissory note markets at the end of the second quarter, with an outstanding balance of 2.948 billion euros in the European programme and 1.869 billion dollars (1.707 billion euros) in the US programme.
The company indicated in the information sent to the CNMV that "issuance levels continue to be competitive, despite the volatility derived from rate hikes by central banks".
The company chaired by Ignacio Sánchez Galán indicated that it expects in any case to improve financial capacity as "asset rotation transactions" are collected.
The good financial and credit conditions obtained by Iberdrola demonstrate the solidity and robustness of the electricity company's solvency, as well as the confidence that investors continue to place in it, as already shown in the latest operations in November 2022 and January 2023, following the positive reception of the update of the strategic plan for the period 2023-2025, carried out in London at the beginning of November before the main stock market analysts.