- The transaction has been oversubscribed by 45%, demonstrating the company's ability to mobilize capital and its status as a benchmark among major global financial institutions.
- The electricity company continues to strengthen its liquidity and diversify its financing sources in a context of growing investment opportunities.
- Avangrid, Iberdrola's subsidiary in the US, is also participating in the transaction given the Group's strong growth prospects in that country.
Iberdrola has signed a €2.5 billion credit line to continue strengthening its liquidity and diversifying its sources of financing.
The transaction, closed with 32 international banking entities , has been oversubscribed by 45% , reflecting the banking sector's confidence in the solvency and strategy of Iberdrola, Europe's largest electricity company and one of the two largest in the world by market capitalization.
The credit line has a term of five years , with the option to extend for two more years, and is multi-currency. Its cost is the most competitive of all Iberdrola's lines.
Avangrid, Iberdrola's subsidiary in the United States , has joined the operation, given the significant growth opportunities in the country, which has already become the Group's main investment destination.
During the signing, Iberdrola Chairman and CEO Ignacio Galán stated: 'This transaction strengthens our ability to continue increasing our investments in grids , renewables, and energy storage to respond to the strong growth in demand driven by electrification in countries such as the United States and the United Kingdom. This credit facility once again demonstrates the international financial community's complete confidence in our growth strategy, through which we promote energy self-sufficiency and security, economic growth, and societal well-being.'
With this transaction, the company strengthens its liquidity, which amounted to €20.9 billion at the end of the first quarter , and consolidates its leadership in sustainable financing by linking its cost to meeting decarbonization goals and aligning its investments in grids, renewables, and storage with the European Union's taxonomy.
BBVA acted as co-coordinator and agent bank, and Bank of America acted as co-coordinator. The sustainability coordinators were BBVA, BNP Paribas, and Credit Agricole. With the agreement signed today, more than 97% of the company's credit lines are sustainable.
Innovative and sustainable financing
In recent days, Iberdrola has closed two financial transactions that demonstrate its ability to mobilize large amounts of capital and the interest it generates among major international banking institutions.
Last week, the company closed one of the largest green financing deals in Europe, totaling €4.1 billion for its East Anglia THREE offshore wind farm, with the participation of 24 banks.
Source: Iberdrola
