News
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21/11/2024Iberdrola places €800 million hybrid green bond Iberdrola has placed an €800 million hybrid green bond in the Euromarket today, as reported to the National Securities Market Commission (CNMV). The bond issued is perpetual but has a par call option in August 2030. The coupon has been set at 4.25%, making it Iberdrola’s most competitive hybrid operation in the last 3 years. Demand reached more than €3 billion, 3.75 times oversubscribed, and consists of more than 200 international investors, mainly from Europe and the United Kingdom. Supported by strong demand, the coupon obtained is competitive with a new issuance premium close to zero despite a market environment influenced by geopolitical instability. The demand and the coupon show investors’ confidence in Iberdrola’s financial strength, business outlook and growth ambition. The proceeds will be used to refinance the renewable assets allocated to the 2019 hybrid that is being replaced. The call back will take place soon, thus keeping the company's hybrids stack stable at 8.25 billion euros. The company has taken advantage of the improvement in both interest rates and credit spreads. Iberdrola's flexibility to refinance this transaction has contributed to its success. The hybrid bonds count as 50% capital, in accordance with the methodology of the main rating agencies, so this operation contributes to maintaining the group's credit ratings. The last issuance of this type of debt by Iberdrola dated from January 2023 with a coupon of 4.87%. Nine top-tier international banks have participated in the placement: BNP, Unicredit, JP Morgan, HSBC, Bank of America, Santander, Natixis, SMBC and Commerzbank, which have facilitated access to investors. Investor Confidence Investor confidence in Iberdrola remains strong. The operation today represents Iberdrola’s eighth public operation in the market so far in 2024, which have raised a total of 6.6 billion euros. The other transactions include: * A €700 million hybrid bond was issued in January. * A bond valued at 335 million Swiss francs was issued in June. * A €750 million senior bond was issued in July. * In August Iberdrola placed 525 million dollars (490 million euros) through the US subsidiary. * On September 23, Iberdorla placed 2.15 billion euros in the largest issuance of senior debt in its history. * Just last month the company closed its first green bond in Sterling for 15 years totalling 500 million (595 million euros) with strong support from investors. * Earlier this week Iberdrola issued green debt for 750 million Australian dollars (about 460 million euros). Investor demand exceeded the amount offered by 2.8 times. Iberdrola has carried out four operations in euros this year and is the only European utility to have carried out operations during 2024 in the Swiss (June), British (October) and Australian (November) markets. It also made a private placement in Norwegian kroner in September. READ MORE
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21/11/2024 - 00:00 UTC +01:00Iberdrola recognised in Mexico for its strategy to multiply its social impact Iberdrola, through its company in Mexico, Iberdrola México , has been recognised by the Ibero-American General Secretariat (SEGIB) and the Ibero-American Foundation for Quality Management (Fundibeq) with the Best Practices Award in the SDGs, in the Silver category, for its strategy to successfully develop its social projects in communities and spread its culture of sustainability among suppliers and customers. Iberdrola Mexico has been recognised the most times of any company by Fundibeq, with a total of 8 awards: 3 Ibero-American Quality Awards and 5 Best Practices in SDGs. You can read the full story at Iberdrola Mexico's Communications Room . READ MORE
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20/11/2024 - 19:38 UTC +01:00Spain: EIB and Iberdrola sign €500 million loan financed by Next Generation funds to invest in the expansion of smart electricity grids The European Investment Bank (EIB) and Iberdrola have signed a loan of €500 million within the framework of the Regional Resilience Fund to develop and expand smart electricity grids, facilitating renewable energy integration and industry connection. The Regional Resilience Fund channels financing from Spain's Recovery, Transformation and Resilience Plan within the Next Generation EU to boost environmental and social investments in the Autonomous Communities. The Fund is led by the Ministry of Economy, Trade and Enterprise. The Autonomous Communities and Cities, and the Spanish Federation of Municipalities and Provinces participate in the selection of projects. The EIB is the strategic partner for the management of the Fund. The electricity project financed will improve the efficiency and resilience of the power grid, allow the electricity to be put to new uses – like heat pumps and electric vehicles – and enable more renewable energy sources to be connected to the grid, speeding up the energy transition and its positive impacts in the energy security and autonomy as well as the decarbonisation of the Spanish electricity sector. A €700 million loan had already been approved from EIB's own funds to finance the project. This financing has now been supplemented by an additional €500m loan from the Spanish Recovery Plan channelled by the EIB through the Regional Resilience Fund. This is the first operation with a private entity financed by the Regional Resilience Fund under the direct facility launched by the EIB in June 2024 to co-finance projects in sectors such as renewable energy, clean transport and sustainable infrastructure. The Director General of International Financing of the Spanish Treasury, Inés Carpio, stressed the importance of the Regional Resilience Fund “to continue promoting the modernisation and transformation of the productive sector and the Spanish economy through the Recovery Plan, with a clear focus on energy transition and efficiency.” “We are very pleased to sign the first financing from the Regional Resilience Fund for the expansion and development of Iberdrola's electricity grids in Spain,” said Antonio Lorenzo, Head of the EIB's Corporate Finance Division in Spain. “This is a key project for the development of smart grids that will enable the integration of renewable energies into Spain's electricity system, with an impact on 12 autonomous communities.” The project will also provide a boost for industrialisation, economic growth and job creation in Spain, maintaining 10 000 jobs per year in 12 autonomous communities throughout the implementation period. The financing arrangement underscores the commitment of the EIB and the Spanish Ministry of Economy, Trade and Enterprise to economic, social and territorial cohesion, with over 65% of the total investment going to regions where income per capita is below the EU average. “With this financing Iberdrola will be able to speed up the development of the distribution network in Spain over the coming years, which is so necessary for serving and connecting Spain's industry and businesses. With this new EIB financing we are expanding the development of smart grids, which are essential for facilitating the energy transition, boosting efficiency and improving the distribution network and the quality of supply. We are also contributing to the electrification of the economy and to reduce the country's energy dependence", says José Sainz Armada, Iberdrola's Chief Financial Officer. Background information About the Regional Resilience Fund The Regional Resilience Fund was created to facilitate access to Next Generation EU loans from the Spanish Recovery, Transformation and Resilience Plan for the Autonomous Communities, with the aim of boosting investments and developing projects in eight priority areas: social and affordable housing; urban renewal; transport and sustainable tourism; the energy transition; water and waste management; the care economy; research, development and innovation; and the competitiveness of industry and SMEs. The Fund is led by the Ministry of Economy, Trade and Enterprise. The Autonomous Communities and Cities, and the Spanish Federation of Municipalities and Provinces participate in the selection of projects. The EIB is the strategic partner for the management of the Fund. In June 2024, the EIB and the Spanish Ministry of Economy signed the agreement to launch the Regional Resilience Fund and activate the first phase of available financing totalling up to €3.4 billion, including: * A direct facility to co-finance EIB-supported operations in sectors such as renewable energy, clean transport or sustainable infrastructure * An intermediated facility to be invested by financial intermediaries selected by the EIB, to support urban development and sustainable tourism projects * Two instruments intermediated by the EIF that will facilitate SME financing in areas such as innovation, sustainability and competitiveness. EIB The EIB is the long-term lending institution of the European Union, owned by the Member States. It finances sound investments that further EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality. The EIB Group, consisting of the European Investment Bank and the European Investment Fund, reported total financing signatures in Spain of €11.4 billion in 2023, approximately €6.8 billion of which went to climate action and environmental sustainability projects. The EIB Group signed a total of €88 billion in new financing in 2023. Iberdrola and its commitment to sustainable financing and a carbon-free country Electricity grids are the necessary platform to advance the electrification of the economy. They enable the integration of more renewables, the attraction of industry, sustainable mobility, smart cities and self-consumption. Distribution grids are a key enabler of initiatives and trends that are changing the economy, such as electric mobility, heat pump, self-consumption and smart cities. Iberdrola operates one of the most important electricity distribution systems in the world. The company already has more than 1.3 million kilometres of power lines and more than 4,500 substations in Spain, the United States, the United Kingdom and Brazil, which distribute electricity to more than 100 million people around the world. Iberdrola is continuing to move forward with its sustainability strategy, which is based on electrifying the economy through clean energy, and which focuses on combating climate change and creating wealth and jobs in the regions where it operates. At the end of the third quarter of 2024, the company had green or sustainability-linked financing of more than €57 billion, including over €210,600 millions of green bonds READ MORE
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20/11/2024 - 17:00 UTC +01:00Iberdrola completes the installation of its electricity transmission project in Brazil ahead of schedule Iberdrola, through its company in Brazil, Neoenergia , has successfully completed two years ahead of schedule the Paraíso project for electricity transmission lines in Mato Grosso do Sul, which was awarded at auction in June 2022. This project demonstrates Neoenergia's commitment to sustainable development and the energy transition in Brazil, which requires further integration and reinforcement of electricity transmission. You can read the full story at Neoenergia's Press Room. READ MORE
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20/11/2024 - 09:52 UTC +01:00Iberdrola makes progress on the construction of one of its largest photovoltaic projects in Spain Iberdrola is making progress in the construction of one of its largest photovoltaic projects in Spain, the new 'Ciudad Rodrigo' plant, which is being built in the province of Salamanca, in the areas of Valdecarros and the Sierra de Torralba, and will have a capacity of 316 MW. This solar facility, which is part of Iberdrola's partnership with Norges Bank Investment Management , will generate enough clean energy to supply 150,000 homes a year and will prevent the emission of 75,000 tonnes of CO2 a year into the atmosphere. In addition, this plant has entered into a long-term purchase and sale agreement (PPA) . The construction of the 589,000-module photovoltaic plant, with an investment of €200 M, will have a strong local component. Up to 800 workers and numerous local suppliers are expected to be involved in the project during peak periods. Iberdrola works on numerous initiatives that combine the installation of renewable projects with the conservation of the biological diversity of ecosystems , taking care of flora, fauna and our natural heritage. In this case, it will restore habitats of interest to the community. You can read the full story at the Iberdrola España's Communication Room . READ MORE
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19/11/2024 - 08:08 UTC +01:00Iberdrola launches first green bond issue by a Spanish company in Australia Iberdrola continues to diversify its sources of financing. The company chaired by Ignacio Galán today issued green bonds for AU$ 750 M –about €460 M–. It is the first non-financial Spanish company to issue in this market, known as a 'kangaroo'. The issue was in two tranches – AU$ 350 M (€215 M) for a six-year term and AU$ 400 M (€245 M) for a 10-year term – with demand reaching AU$ 2.1 B in aggregate, implying it was oversubscribed by 2.8. Thanks to strong interest from investors , who once again support the strategy of Europe's largest electricity company by market capitalisation, the weighted average cost of the operation was set at less than 5.65%, for an average life of more than 7 years. This issue attracted the interest of more than 80 investors with a long-term vision, including Asian investors in addition to Australians. Those committed to the ESG had a relevant presence, thanks to the green nature of the operation, which will finance future investments in the renewable business in the country. The company's ability to access the financing markets is reaffirmed with this transaction, as well as its strategy of diversifying in the capital markets as market weather improves. In addition to the operations carried out in the Euromarket (in January, July and September), Iberdrola is now the only European utility to have operated in 2024 in the Swiss (June), British (October) and Australian (November) markets, which, together with a private placement in Norwegian kroner in September, positions the Group before a wide range of financing possibilities in capital markets. The Australian transaction comes a month after results were presented for the first nine months of the year, where Iberdrola reported a net profit of €5,471 M and set its net profit growth at 14% – before extraordinary items – for the year as a whole. The banks involved in the placement were Deutsche Bank, Mizuho, ANZ, Sumitomo and MUFG. Today's issue is the seventh public transaction in the market so far in 2024. The first was the €700 M hybrid bond issued in January, the second, in the Swiss market for 335 M francs at the end of June, the third, the €750 M senior bond issued in July , the fourth took place in August, when Iberdrola placed $525 M (€490 M) through its US subsidiary , the fifth was on 23 September, when it placed €2.15 B in its largest-ever senior debt issue , and the sixth just a month ago when the company closed its first green bond in pounds sterling in the last 15 years for 500 M (€595 M) with strong backing from investors. International confidence The market's confidence in Iberdrola is solid. In addition to debt issues, a few days ago the electricity company signed a 120 M loan with the European Investment Bank (EIB) to develop energy innovation projects. It has also extended its alliance with the World Bank with a 300 M green loan for renewable projects in emerging countries. In addition, it signed a €500 M green syndicated loan with Cesce coverage with ICO, Sabadell and HSBC, and in the first quarter of 2024 it signed another €700 M green loan with the European Investment Bank to build up electricity grids in Spain. At the end of December 2023, the company signed its largest credit line in history for €5.3 B 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 bank’s strong commitment to Europe's leading utility by capitalisation. This financial strategy complements the historic investment plan launched by the company in March 2024. This roadmap, the implementation of which is a year ahead of schedule, aims to drive the economy’s electrification, with a strong focus on electricity grids and renewables. READ MORE
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18/11/2024 - 15:00 UTC +01:00ScottishPower holds its UK Supplier of the Year Awards 2024 Through its UK subsidiary ScottishPower , Iberdrola has held its 2024 Supplier Awards, an event that recognised the companies from across the UK that have been intrinsic to ScottishPower’s work to deliver a better future quicker as it doubles its investment in critical energy infrastructure. From transformers to turbines, monopiles to maintenance contracts, every aspect of the supply chain is benefiting as ScottishPower works with other companies across the UK who in turn create jobs and expand as it invests. ScottishPower has once again recognised the key role of suppliers at a gala event with the slogan Delivering a Better Future, where a total of ten awards were presented. * Supplier of the Year Award: Keltbray Energy Limited * Health & Safety Award: Providor Limited * Customer Services Award: Excalon Limited * Diversity & Inclusion Award: Stemovators * Sustainability Award: Tusker Direct Limited * Digitalisation & New Technologies Award: EA Technology Limited * Energy Transition Award: Algeco UK Limited * Entrepreneurship Award: Forsyth of Denny Limited * Works and/or Services Award: Hughes Subsea Services Limited * Economic Recovery & Job Creation Award: Clyde Ventures Limited Business You can read the full story at the Scottish Power Communication Room. READ MORE
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18/11/2024 - 09:51 UTC +01:00Iberdrola and the Government of Nuevo León install solar panels in seven schools in Mexico Iberdrola, through its subsidiary in Mexico, Iberdrola México , in partnership with the Government of Nuevo León, has launched the Lights of Hope social programme, which consists of installing solar panels in basic education centres. In the programme’s first phase, solar panels were installed in seven schools in the municipalities of China, Galeana and Monterrey. The Lights of Hope social programme will benefit 935 students and teachers over a five-year period supplying those schools with green power. You can read all about it at Iberdrola Mexico's Communications Room . READ MORE
