Iberdrola refinanced 5.3 billion euros, signed the largest credit limit in its historyThe company, which has a total of 33 international banking institutions, stated that it has placed the cost of this operation at the most competitive levels for the group, at prices similar to those in 2019.
This line is linked to meeting two sustainability targets: reducing emissions by 2030 (scope 1, 2 and 3) and increasing the percentage of women in relevant positions.
The energy company stated that the operation was oversubscribed by more than 40%, “which shows the bank’s strong commitment to the first step.” ‘usefulness’ “Second in Europe and the world by capitalization.”
BBVA served as global coordinator and agent bank. The coordinators on sustainability issues were BBVA, Santander and Credit Agricole. With this agreement, more than 96% of the company’s credit lines become sustainable.
Iberdrola president Ignacio Sánchez Galán emphasized that this credit line “is another example of the financial community’s solid confidence in the company’s strategy, which is based on creating value through investment in the energy transition and financial discipline.” He also added that the operation “strengthens” the company’s commitment to ESG goals.
In particular, the duration of the subscribed line is five years, with the option to extend it. two more years and multi-currency nature. The operation contributes to fulfilling the commitment to maintain optimal liquidity, which reached 20.2 billion euros at the end of the third quarter.
Subject to compliance with ESG objectives
The cost of this credit line is subject to compliance with two strategic ESG objectives for the group. Firstly, the reduction of equivalent carbon emissions under scopes 1, 2 and 3 is a fact that Iberdrola takes into account. “once again it is a world pioneer and it shows Ambition and appetite to lead the process of decarbonization of the economy, as targets including Scope 3 are not widespread in the market, and secondly, the increase in the proportion of women in relevant positions in the company.
Similarly, the margin of the operation will be adjusted annually depending on the achievement of the objectives in question: downwards (if met) or upwards (if not met).
Iberdrola is committed to formalizing its debt instruments in a sustainable format. In fact, most credit lines were already focused on contributing to the UN Sustainable Development Goals (SDGs); in particular, targets 7 (clean and accessible energy) and 13 (combatting climate change). The signed operation also contributes to number 5 (gender equality and the empowerment of women and girls).
Leader in sustainable finance
Iberdrola has established itself as a global benchmark in sustainable finance by becoming the first global private group to issue green bonds, after becoming the first Spanish company to issue a bond with such characteristics in 2014. The group currently has almost €20 billion of live green bonds.
In the banking market, The energy company signed the first loan in 2016 green for 500 million euros for an energy company. This operation was followed by various credit operations and credit limits based on sustainability criteria.