Iberdrola refinanced 5.3 billion euros, signing the largest credit facility in its history. The company, backed by a network of 33 international banking partners, reported that the cost of this operation sits at highly competitive levels for the group, with pricing aligned to levels seen in 2019.
The financing is tied to pursuing two key sustainability targets: cutting emissions across scopes 1, 2 and 3 by 2030 and increasing the share of women in senior roles within the organization.
The operation was oversubscribed by more than 40 percent, underscoring the banking sector’s strong confidence in Iberdrola’s strategy. The line places the company among the European leaders in capitalization on a global scale.
BBVA acted as global coordinator and agent bank, with leadership on sustainability coordinated by BBVA, Santander and Credit Agricole. This agreement ensures that more than 96 percent of Iberdrola’s credit facilities are aligned with sustainable financing criteria.
Ignacio Sánchez Galán, the president of Iberdrola, highlighted that this credit line demonstrates the financial community’s trust in the company’s strategy, which focuses on creating value through investment in the energy transition and maintaining financial discipline. He noted that the arrangement strengthens Iberdrola’s commitment to environmental, social and governance goals.
The subscribed line has a five year tenor with an option to extend for up to two additional years and features a multi currency structure. The move helps Iberdrola maintain robust liquidity, which stood at 20.2 billion euros at the end of the third quarter.
Subject to compliance with ESG objectives
The cost of the credit line remains contingent on meeting two strategic ESG objectives. First, the reduction of carbon emissions across scopes 1, 2 and 3 is a central consideration. Iberdrola has positioned itself as a leader in decarbonization, recognizing that targets including Scope 3 emissions are not commonly pursued by all market participants. Second, the company seeks to raise the share of women in senior positions.
Additionally, the margin for the facility will be reviewed annually based on the achievement of these targets, moving downward if goals are met and upward if they are not reached.
Iberdrola is committed to issuing debt instruments in sustainable formats. A large portion of its credit lines already supports the United Nations Sustainable Development Goals, notably goals 7 for clean and accessible energy and 13 for climate action, while the operation also contributes to goal 5, which focuses on gender equality and empowerment.
Leader in sustainable finance
Iberdrola has established itself as a global benchmark in sustainable finance. It became the first private global group to issue green bonds, following a landmark issuance in 2014 as the first Spanish company in that category. Today, the group maintains close to 20 billion euros in active green bonds.
In the banking market, Iberdrola issued the first green loan in 2016, a 500 million euro facility for a major energy company. Since then, the company has pursued numerous sustainability linked credit facilities and mandates, steadily expanding its portfolio of finance tied to environmental criteria.