Iberdrola Secures €5.3 Billion Credit Facility with ESG Commitment

Ignacio Galán, Executive Chairman of Iberdrola

(IN BRIEF) Iberdrola, a major energy company, has secured a €5.3 billion credit facility in its largest-ever financing deal. This credit line, signed with 33 international banks, is linked to sustainability objectives, including reducing greenhouse gas emissions by 2030 and increasing the representation of women in leadership positions. The rates of the credit facility are tied to the achievement of these objectives, aligning with Iberdrola’s strong commitment to sustainable financing. This move reinforces the company’s liquidity position, which stood at €20.2 billion at the end of the third quarter, and supports its extensive investment plan focused on decarbonizing the economy and expanding renewable energy sources.

(PRESS RELEASE) BILBAO, 21-Dec-2023 — /EuropaWire/ — Iberdrola, S.A. (BME: IBE), with more than 170 years of history, is a global leader in clean energy, grids and storage, a company that is today more solid, sustainable and diversified than ever, announces that it has reinforced its liquidity position by successfully refinancing €5.3 billion through the signing of its largest-ever credit facility. This landmark agreement, executed in partnership with 33 international banks, further solidifies Iberdrola’s commitment to sustainable financing, with the facility’s terms linked to a set of Environmental, Social, and Governance (ESG) objectives.

The credit facility has been established with competitive rates similar to those negotiated by Iberdrola in 2019, showcasing strong confidence from the banking sector in the strategic direction and financial strength of Europe’s largest electricity utility by market capitalization and the second-largest globally.

Ignacio Galán, Executive Chairman of Iberdrola, commented, “This credit line is yet another example of the financial community’s strong confidence in our strategy, based on value creation through investment in the energy transition and financial discipline. The transaction also enhances our commitment to our ESG goals.”

The multi-currency credit facility has an initial duration of 5 years, with an option for a two-year extension. It bolsters Iberdrola’s objective of maintaining optimal liquidity, which stood at €20.2 billion at the end of the third quarter.

The credit facility’s rates are contingent upon the achievement of two strategic ESG objectives. First, a reduction in carbon equivalent emissions under scopes 1, 2, and 3, with an emphasis on scope 3 emissions reduction, highlighting Iberdrola’s continued leadership in energy decarbonization. The second objective centers on increasing the representation of women in key leadership positions within the company.

The rates set for the credit facility can be adjusted annually based on the attainment of these objectives. Notably, 96% of Iberdrola’s credit lines align with sustainability targets, contributing to the United Nations’ Sustainable Development Goals (SDGs), including goals 7 (clean and accessible energy), 13 (climate action), and 5 (gender equality and empowerment of women and girls).

BBVA acted as the global coordinator and agent bank for this credit facility, with sustainability coordination provided by BBVA, Santander, and Credit Agricole.

GLOBAL LEADER IN SUSTAINABLE FINANCING Iberdrola has established itself as a global benchmark in sustainable finance. The company issued its first green bonds in 2014, becoming the world’s leading private issuer of green bonds. Currently, the group has nearly €20 billion in outstanding green bonds.

In 2016, Iberdrola initiated its sustainable finance journey with a green loan of €500 million, subsequently aligning its loan and credit line strategy with sustainability objectives.

This financial strategy (ESG + F) reinforces Iberdrola’s €47 billion investment plan announced in November 2022, covering the period from 2023 to 2025. The plan aims to accelerate the decarbonization of the economy, reduce reliance on fossil fuels, and prioritize smart grids and renewable energy sources. Iberdrola will provide updates on this plan in March 2024 during its next Capital Markets Day.

Media contacts:

Tel: +34 91 784 32 32
comunicacioncorporativa@iberdrola.es

SOURCE: Iberdrola