Iberdrola signs the largest credit line in its history for 5,300 million with 33 banks
Iberdrola continues to guarantee its liquidity. The group has refinanced 5,300 million euros by signing its largest credit line. This financing has been signed with 33 international banks. It also strengthens its leadership in sustainable financing by linking its cost to compliance with a series of ESG objectives (environmental, social and good governance criteria).
The cost of this transaction is at the most competitive levels for Iberdrola, with prices similar to those of 2019. The transaction has been oversubscribed by more than 40%, demonstrating the strong commitment of the bank to Europe's leading utility by capitalisation and the second largest in the world.
Ignacio Galán, Chairman of Iberdrola, said: "This credit line is a further sign of the solid confidence of the financial community's solid confidence in our strategy, based on the creation of value through investment in the energy transition and financial discipline. The operation also reinforces our commitment to our ESG objectives".
The facility has a duration of five years, with an option to extend for an additional two years and is multi-currency. The conditions obtained underscore the interest and confidence in the Group's solvency and strategy. The operation contributes to fulfilling its commitment to maintain optimal liquidity, which amounted to 20,200 million euros at the end of the third quarter.
The cost of this credit line is subject to the fulfilment of two strategic ESG objectives for the group. Firstly, the reduction of carbon equivalent emissions under scopes 1, 2 and 3, which makes it a global pioneer once again and demonstrates its ambition and appetite to lead the process of decarbonisation of the economy, as targets that include scope 3 are not common in the market. The margin of the operation will be adjusted annually depending on the achievement of these targets: downwards (if they are met) or upwards (if they are not met).
Iberdrola is committed to formalising its debt instruments in a sustainable format. In fact, many of the credit lines were already focused on contributing to the UN Sustainable Development Goals (SDGs), mainly 7 (clean and accessible energy) and 13 (fight against climate change). The operation now signed also contributes to Goal 5 (gender equality and empowerment of women and girls).
BBVA has acted as global coordinator and agent bank. The sustainability coordinators have been BBVA, Santander and Credit Agricole. With today's agreement, more than 96% of the company's credit lines are sustainable.
GLOBAL LEADER IN SUSTAINABLE AND GREEN FINANCING
Iberdrola has established itself as a global benchmark in sustainable financing, being the first private group in the world to issue green bonds, after becoming the first Spanish company to issue a bond of these characteristics in 2014. The group currently has almost 20,000 million euros of green bonds outstanding.
In the banking market, in 2016, the company also underwrote the first green loan for an energy company, in the amount of 500 million euros. That operation was followed by various loan operations and credit lines linked to sustainability criteria.
This financial strategy (ESG+F) complements and strengthens the historic investment plan launched by the company in November 2022, in which it announced the investment of 47 billion euros between 2023 and 2025. The plan aims to boost the decarbonisation of the economy and leave fossil fuels behind, with a strong boost to electricity grids and renewables. Iberdrola will update this roadmap next March at a new edition of its Capital Markets Day.
