Iberdrola has refinanced over €5bn as part of a credit facility signed with 33 international banks.
The operation has been completed at competitive rates, similar to those agreed by Iberdrola in 2019.
With an initial duration of five years, the multi-currency credit facility has an option to extend for two additional years. The agreement strengthens Iberdrola’s commitment to maintain optimal liquidity, which stood at €20.2bn at the end of the third quarter.
The transaction was oversubscribed by more than 40%, demonstrating the banking world’s strong confidence in the strategy and solvency of the company
The rates agreed as part of the credit facility are 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.
Including scope 3 emissions reduction, which is not typical in this type of transaction, highlights Iberdrola’s continuing leadership in energy decarbonisation.
The second ESG objective focuses on increasing the percentage of women occupying relevant leadership positions in the company.
The rates agreed for the credit facility can be adjusted up or down annually according to the delivery of objectives.
BBVA acted as global coordinator and agent bank. The sustainability coordinators were BBVA, Santander and Credit Agricole.
Iberdrola executive chairman Ignacio Galan said: “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.”