Iberdrola, an electric utility company based in Spain, said it has signed its largest-ever credit facility, refinancing more than $5.8 billion.
The agreement was signed with 33 international banks and the facility was linked to a series of environment, social, and governance (ESG) objectives.
Iberdrola touts itself as the first Spanish group to issue green bonds in 2014. It is now the world's leading private issuer of green bonds, with more than $25 billion of outstanding green bonds.
The rates as agreed as part of the credit facility are tied to two ESG objectives, including the reduction of carbon equivalent emissions under Scopes 1, 2, and 3. The second objective is to increase the percentage of women occupying relevant leadership positions in the company.
"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,” Ignacio Galán, executive chairman of Iberdrola, said in a statement. “The transaction also enhances our commitment to our ESG goals."
Based on the delivery of the objectives, rates of the credit facility can be adjusted up or down.
Overall, 96% of Iberdrola’s credit facilities are sustainably focused and contribute toward the goals of the United Nations Sustainable Development Goals (SDGs). The new operations also add to Iberdrola’s efforts to improve clean and accessible energy and fight against climate change, but also include new objectives for gender equality and empowerment and empowerment of women and girls.
Iberdrola announced its investment plan in November 2022 for the period of 2023 through 2025, with nearly $52 billion in strategic investment. The plan targets decarbonization to move away from fossil fuels and a commitment to smarter electricity grids and renewables.
BBVA acted as the global coordinator and agent bank of the refinancing. The sustainability coordinators were BBVA, Santander, and Credit Agricole.
