Iberdrola is to issue green mongrel bonds for 750 million euros
It therefore bring forward part of the demand for this type of bond issue blazoned in its strategic plan-last November-when it committed to issuing a aggregate of1.5 billion euros during 2022
The finances raised will be used to finance renewable energy installations in Australia and Poland, as part of the group’s€ 75 billion investment plan for the 2020-2025 period
With this sale, for which original demand exceeded 10 billion euros, the company’s live green backing volume now exceeds 15 billion euros enabling Iberdrola to cement its position as the world’s largest green bond issuing group
. Moment, Iberdrola fixed the terms and conditions for a new green mongrel bond, for a aggregate of 750 million euros, and has notified the National Securities Market Commission (CNMV). The demand for and the terms of this operation formerly again demonstrate the confidence that the request and investors have in the soundness and solvency of the energy company’s business and growth plans. This operation will also finance the group’s renewable development as per its strategic plan, with systems in Australia and Poland.
The sale is structured as a single tranche, perpetual, but with a buyback date at par in 6 times. Iberdrola may latterly buy back the bond on a monthly base, coinciding with the pasteboard payment date.
This has been set at1.575. These conditions are extremely profitable for a vanquished instrument.
To take advantage of good request conditions, the quantum of 750 million euros will be brought forward to 2021, counting for half of the requirements for mongrels established in the strategic plan for coming time, limiting the pitfalls of interest rate hikes or a possible downturn in the credit requests. This will allow Iberdrola to continue to maintain its excellent fiscal health.
In addition, mongrel bonds count as 50 capital according to the methodology used by the main standing agencies, so this operation also contributes to maintaining the group’s credit conditions.
Despite request volatility, the demand registered shows that investors are veritably interested in fixed income from Iberdrola, over to three billion euros, which is four times the offer. This is possible thanks to the participation of nearly 200 good transnational investors, substantially European. The placement was made by UniCredit, Barclays, Crédit Agricole, Deutsche Bank, HSBC, JP Morgan and Mizuho.
The proceeds will be used to finance and refinance renewable wind and solar granges in Australia and Poland with a combined installed capacity of 757 MW.
These systems are part of the 75-billion-euro investment plan launched by Iberdrola for the period 2020-2025. Of this quantum, utmost of it’ll go to growth in renewables in order to double capacity to 60 GW by 2025, new smart grids and further storehouse capacity. This means 80 of the plan would represent sustainable investments, according to EU criteria.
IBERDROLA REAFFIRMS ITS GLOBAL LEADERSHIP IN GREEN FINANCE
Iberdrola continues to make progress with its sustainability strategy, grounded on the electrification of the frugality and acquainted towards the fight against climate change and the creation of wealth and employment in the communities in which it operates.
With this new issue, which coincides with the Climate Summit held in Glasgow between 31 October and 12 November 2021, of which Iberdrola is the main mate, the company chaired by Ignacio Galán continues to consolidate its leadership in sustainable backing, with further than36.5 billion euros in live operations, of which further than19.75 billion euros correspond to green finance and around16.7 billion to credit lines, loans or marketable paper programmes subject to compliance with sustainability objects. Moment’s operation will strengthen Iberdrola’s position as the world’s leading green bond issuer.
The systems to which the coffers attained from these placements are allocated are aligned with the United Nations Sustainable Development Goals (SDGs), towards which Iberdrola is working Number 7, affordable, clean energy, and number 13, climate action.
The green nature of the issue and the operation of the finances have been validated by Vigeo Eiris, a leading European expert in assessing practices and behaviours by companies and public pots in the areas of terrain, social responsibility and good governance.
valuación de compañías y organizaciones en lo relativo a sus prácticas y comportamiento en áreas de medio ambiente, responsabilidad social y buen gobierno.