Since its first green operation, Iberdrola has successfully completed a total of twelve public issuances of green bonds, to which it is necessary to add other green bonds issued by the subsidiaries. Thus, in November 2017, AVANGRID* (Iberdrola’s subsidiary in the United States) issued its first green bond, in the amount of 600 million US dollars, and in May 2019 it did so again, this time in the amount of 750 million US dollars, to which another 750 million will be added in April 2020.
The Brazilian subsidiary Neoenergia**, in turn, issued its first infrastructure debentures with the “green” seal in June 2019, in the amount of more than 1.2 billion Brazilian reais in nominal value, and in 2020 it also carried out another operation Verde — through its subsidiary Neoenergia Itapabapoana — in the amount of 300 million Brazilian reais to finance investment in transmission lines.
Iberdrola also became the first Spanish issuer to join the Nasdaq index sustainable bond network: the Nasdaq Sustainable Bond Network (NSBN). This index brings together different issuers and homogeneously details information about their financing structure and the principles they follow (GBP — Green Bond Principles — from ICMA — International Capital Market Association —, for example), as well as data on the impacts on the Development Goals Sustainable Development (SDG) of each of the emissions.
SUSTAINABLE BANK FINANCING
The group continues to advance in its objective of making 100% of its credit lines green or sustainable in 2025 — the current figure is 90%.In April 2021, Iberdrola signed with 21 banks a new multi-currency credit line in the amount of 2.5 billion euros linked to two sustainability indicators: a reduction in the intensity of the Company’s issuances (SDGs 7 and 13) and a greater presence of women in leadership positions (SDG 5).
The subscription, with a duration of five years, extendable for another two, was signed with conditions prior to COVID-19. It is also the first operation of a Spanish company that uses the Risk Free Rates (RFR) as a reference, the indexes that will serve as a model for future financing to replace the LIBOR rate (London Interbank Offered Rate).
In addition, the funding introduces for the first time an economic contribution to a sustainable project, the annual amount of which will also vary according to the degree of compliance with the indicators.
In 2016, Iberdrola signed with the bank BBVA the first green loan made in the world for utility. In April 2018, the first green loan in Latin America was signed, when Iberdrola México, 100% subsidiary of Iberdrola, signed a green bank loan with a series of international financial institutions in the amount of 400 million US dollars, which served to refinance the company’s renewable assets in that country.
In addition, in 2021 the company signed the first loan from the energy sector in Europe linked to the reduction of water consumption, in the amount of €250 million over five years, being the largest operation carried out in Spain under the Circular Economy program of 6 billion euros launched by the entity Intesa Sanpaolo in its Business Plan for the period 2018-2021.
Iberdrola also carried out green financing operations with supranational bodies. In 2019, it signed with the Official Credit Institute (ICO) the largest green loan granted by that institution, in the amount of 400 million euros. In 2020, a green financing agreement was signed with the European Investment Bank (EIB) and the ICO, where the first will grant 600 million euros and the second 200 through green loans to finance the construction of more than 20 projects with a potential total more than 2,000 MW.
And in 2021, the company signed the first loan made through the ICO for the promotion of green hydrogen — in the amount of 6 million euros —, which will be used for the first public hydrogen station in Spain, which will be built and operated by Iberdrola to supply the urban bus fleet of Transports Metropolitans de Barcelona (TMB) with renewable hydrogen.