Highlights
- The funds will be used to finance renewable projects in the United States, Australia and Italy.
- It is the first loan from the ICO-Verde line that uses Next Generation Funds for the development of renewable energies.
- The operation is covered by Cesce on behalf of the State through its Green Investment Policy.
Iberdrola, ICO, Sabadell and HSBC have signed a syndicated green loan for an amount of 500 million euros, which is covered by Cesce through its Green Investment Policy on behalf of the State, which is guaranteed by the Internationalisation Risk Reserve Fund (FRRI), attached to the Ministry of Economy, Trade and Enterprise. The green loan, which has a 15-year maturity, will strengthen Iberdrola's diversification of financing sources.
This is the first loan aimed at promoting renewable energy projects that the ICO will finance with Next Generation funds in the second phase of the Recovery Plan. The operation is part of the ICO-Verde programme, which was activated with the signing of the agreement between the Ministry of Economy, Trade and Enterprise and the ICO. The funds from the operation will be used to finance renewable wind and photovoltaic projects, as well as battery projects in the United States, Australia and Italy. The total renewable capacity financed will reach 897 MW and is expected to be operational between 2025 and 2026.
The total amount of Iberdrola's loans under the coverage of Export Credit Agencies (ECAs) is 2,500 million euros. These entities exclusively manage credit and investment insurance on behalf of the states, covering political, commercial, and extraordinary risks associated with internationalisation.
This loan contributes to diversifying Iberdrola's financing, which is able to combine various sources: capital markets, financial institutions, development banks such as the World Bank or the European Investment Bank (EIB) and state agencies for the promotion of exports that reduce or eliminate the risk of operations. In this case, HSBC has been the coordinating bank for the operation.
Cesce, in its role as the Spanish Export Credit Agency (ECA), exclusively manages credit and investment insurance on behalf of the State, thus covering the political, commercial and extraordinary risks associated with the internationalisation of Spanish companies. Its Green Investment Policy, in particular, covers the risks of credits granted to Spanish companies or their foreign subsidiaries for the financing of projects abroad that are considered green, as they comply with the requirements of the EU Taxonomy or Annex I of the OECD Consensus.
International confidence
Banking confidence in Iberdrola is constant. Last month, Iberdrola diversified its financing with a CHF 335 million green bond placement.
In addition, in March it signed a EUR 700 million green loan with the European Investment Bank for the expansion of electricity grids in Spain and in January Iberdrola and the World Bank extended their alliance with a EUR 300 million green loan for renewable projects in emerging countries.
In the same month, it issued 700 million in hybrid bonds, thus keeping the company's hybrid volume stable at 8.25 billion euros. The funds obtained were used to refinance the renewable assets that had been financed with the hybrid bond issued in 2018, which was replaced with this operation.
At the end of December, the company signed its largest credit line in history for 5.3 billion euros with 33 international banks. The cost of this operation was at the most competitive levels for Iberdrola, with prices similar to those of 2019, and the operation was oversubscribed by more than 40%, demonstrating the strong commitment of the banks to Europe's leading utility by capitalisation and the second largest in the world.
Global leader in sustainable and green finance
Iberdrola has established itself as a global benchmark in sustainable financing, being the first private group in the world to issue green bonds, after becoming in 2014 the first Spanish company to issue a bond of these characteristics. The group currently has more than 22,000 million euros of green bonds outstanding.
In the banking market, in 2016, the company also signed the first green loan for an energy company, in the amount of 500 million euros. That operation was followed by various loans and credit lines linked to sustainability criteria.
This financial strategy complements and strengthens the historic investment plan launched by the company in March 2024, in which it announced the investment of 41 billion euros between 2024 and 2026. The plan aims to drive the electrification of the economy, with a strong boost to electricity grids and renewables.
