Iberdrola signs a 2.5 billion euro credit facility with 32 international banks
Iberdrola has signed a 2.5 billion euro credit facility, continuing to strengthen its liquidity and diversify its sources of financing.
The deal, closed with 32 international banks, was oversubscribed by 45%, reflecting the banks' confidence in the solvency and strategy of Iberdrola, Europe's largest electricity company and one of the two largest in the world by market capitalisation.
The credit line has a five-year term, with an option to extend for two more years, is multi-currency and has the most competitive cost of all those available to Iberdrola.
Avangrid, Iberdrola's subsidiary in the United States, has joined the transaction, given the significant growth opportunities in the country, which has already become the main destination for the Group's investments.
During the signing, Iberdrola's chairman, Ignacio Galán, said: 'This transaction strengthens our ability to continue increasing our investments in networks, renewables and storage to respond to the strong growth in demand resulting from electrification in countries such as the United States and the United Kingdom. This credit facility once again demonstrates the international financial community's complete confidence in our growth strategy, which promotes energy self-sufficiency and security, economic growth and the well-being of society.'
With this transaction, the company strengthens its liquidity, which stood at 20.9 billion euros at the end of the first quarter, and consolidates its leadership in sustainable financing by linking its cost to the achievement of decarbonisation targets and the alignment of its investments in networks, renewables and storage with the European Union's taxonomy.
BBVA acted as co-coordinator and agent bank and Bank of America as co-coordinator. The sustainability coordinators were BBVA, BNP Paribas and Credit Agricole. With the agreement signed, more than 97% of the company's credit lines are sustainable.
Innovative and sustainable financing
In recent days, Iberdrola has closed two financial transactions that demonstrate its ability to mobilise large amounts of capital and the interest it attracts from leading international banks.
Last week, the company closed one of the largest green financing transactions in Europe for 4.1 billion euros for its East Anglia THREE offshore wind farm, with the participation of 24 banks.
