News
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16/11/2022We place €1.5 billion green bond with strong investor support Iberdrola has tapped the fixed income market in Europe, as it did in March, successfully closing a double-tranche transaction for a combined amount of €1.5 billion: €750 million with a six-year maturity and €750 million with a ten-year maturity, in both cases in green format , increasing the amount expected due to the high demand received. With massive support from fixed income investors, the company has completed its first transaction in the capital markets since presenting to investors the update of its strategic outlook. With strong demand exceeding €5.3 billion, €2.5 billion in the six-year tranche and €2.8 billion in the 10-year tranche, credit spreads were set at very tight levels of 40 and 63 basis points over the corresponding midswap benchmarks for each maturity, allowing for coupons of 3.125% and 3.375%, respectively. The favourable conditions obtained underscore the solidity and robustness of Iberdrola's solvency, as well as the confidence that investors continue to place in it, accentuated by the positive reception in the last two weeks of both its third quarter results presentation and, especially, the update of its strategic plan for the period 2023-2025, which was presented in London to leading stock market analysts. The facility was placed among a total of 230 investors, of which 158 participated in the six-year tranche and 178 in the ten-year tranche (many participating in both tranches simultaneously). Investors were overwhelmingly from different European countries, as well as from the UK. Green bonds tend to generate higher demand and lower cost, as the interest of socially responsible investors is added to that of regular investors. A majority of the transaction has been placed with ESG investors, so Iberdrola continues to diversify its investor base and broaden demand, which enhances the execution of these transactions in difficult market times. The funds raised will be allocated to green eligible assets, as defined in Iberdrola's Green Financing Framework. Ten leading international banks participated in the placement, JP Morgan (Coordinator), Caixabank, Citi, Commerzbank, Crédit Agricole, Deutsche Bank, Morgan Stanley, MUFG, Natwest and Royal Bank of Canada, in a less volatile market context following the publication of the latest inflation data in the United States, although still complex, in the context of monetary policies yet to be fully defined. This operation strengthens Iberdrola’s already comfortable liquidity position, at excellent conditions and at a good time in the market, following the turnaround in interest rates after last week's US inflation data. Financial strength to deliver the energy transition Last week, the company announced its Strategic Plan for 2023-2025, with which it intends to advance its global growth with investments of €47 billion to boost the energy transition, employment and net zero emissions. By business areas, Iberdrola will allocate €27 billion euros to grids and €17 billion to renewables. The new investments planned for the period 2023-2025 enable Iberdrola to forecast gross operating profit (EBITDA) of between €16.5 billion-€17 billion by 2025, representing average annual growth of between 8% and 9%. Spain will account for 31% of EBITDA. In addition, the company estimates that net profit will increase to between €5.2 and €5.4 billion by 2025, representing average annual growth of between 8% and 10%. READ MORE
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14/11/2022We celebrate the I edition of the Innovation Week in Bilbao and bring together the young talents of the future Iberdrola will hold the first edition of Innovation Week on 15, 16 and 17 November, a week dedicated to sharing the most advanced R&D&I projects . Its global smart grid center located in Larraskitu (Bilbao) -the Global Smart Grids Innovation Hub , which has just celebrated its first anniversary-, will be the place where young talents, collaborating companies, suppliers, universities and institutions will meet. The most innovative projects will come out of the Hub to demonstrate the use of drones for line work, future substation robots, virtual and mixed reality in operations... The motto and goal of this first edition is 'Building together the network of the future'. Talent and Data Day The first day will bring together the young talents of the future. Around 50 employees from the Graduates Programme will join students from different universities to share the potential for innovation in smart grids, and solve an ongoing challenge of generating value for customers through data. Open Innovation Day The second day, on 16 November, will focus on the GSGIH's partner companies, of which there are already more than 80. Together with suppliers and start-ups, they will be able to discuss more agile innovation models and share future digital transformation projects. The GSGIH is a hub for growth and collaboration around decarbonisation and energy transition and the key role of smart grids in this regard. Institutional closure The first edition of Iberdrol will close on Thursday 17 November will close at the GSGIH in Bilbao, dedicated to demonstrating what innovation and collaboration can bring, as underlined by the slogan of this first edition 'Building the grid of the future together'. This conference will be an opportunity to continue to allign all the elements: technology, investments and energy policy frameworks that provide incentives for the electricity sector to assume its fundamental role in the energy transition. The closing ceremony will be institutional, with the attendance of the Minister of Economic Promotion and Infrastructures of the Basque Government , Arantxa Tapia, and the CEO of Iberdrola España, Mario Ruiz-Tagle. READ MORE
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14/11/2022We present the most ambitious Climate Action Plan for COP27 Iberdrola has presented its Climate Action Plan at COP27 in Sharm el Sheikh (Egypt), the most ambitious presented by a company at the Summit, which brings forward the goal of carbon neutrality of generation plants, its electricity distribution activity and its own consumption (scopes 1 and 2) to 2030, and the total decarbonisation of its activities by 2040. This makes the company the energy company with the most ambitious targets in this area. Iberdrola has also presented its Biodiversity Plan, which aims to achieve a net positive impact on species and ecosystems by 2030. The Plan addresses the impacts of the group's activities on nature throughout the life cycle of its facilities, considering the supply chain and creating environmental, economic and social value through ecosystem services. Iberdrola's executive chairman, Ignacio Galán, spoke online about the current situation. "The current crisis has further reaffirmed the need to accelerate electrification with renewables and electricity grids to achieve full decarboniaation and also energy self-sufficiency. After 20 years of experience, the Climate Action Plan is a new boost to Iberdrola's commitment to zero net emissions as a means of preserving the environment and generating employment and industrial development. The next decade will be crucial if we are to meet climate targets and protect biodiversity, and we must all work together toay to achieve them. Iberdrola's roadmap was detailed in the framework of the round table " Renewed ambition in the face of the current multiple crisis", in which also participated, among other institutions, the European Investment Bank, represented by its Director of Mandate Management, Christoph Kunh; the International Energy Agency, through its Chief Economist, Tim Gould; Gonzalo Muñoz, Climate Champion of the United Nations; Patricia Zurita, CEO of Birdlife International and Ovais Sarmad, Deputy Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC). During the meeting, moderated by the CEO of We Mean Business, María Mendiluce, the plan presented by Iberdrola was positively assessed, also from the conservation sector, as it constitutes an advanced action in the fight against climate change. At the round table it was made clear that, in the current "multi-crisis" context (climate, energy, inflation, biodiversity...), Iberdrola's new plans should serve as an example to continue advancing in the fight against global warming, responding to the calls from the scientific, environmental and social world. The plans presented in Egypt consolidate Iberdrola as a business leader in the fight against climate change and for the protection of biodiversity, with ambitious targets based on science and fully backed by its investment plan. The company announced last week in London a record plan of €47 billion until 2025, with more than €27 billion earmarked for networks, and investments of €17 billion in renewable energies, to reach network assets of €56 billion and a renewable capacity of 52,000 MW by the end of the period. READ MORE
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11/11/2022Ignacio Galán on Bloomberg TV: "The United States provides a predictable, stable and attractive framework" Ignacio Galán explained in a live interview with Bloomberg TV that Iberdrola will focus on growing its electricity grids over the next three years, thanks to record investments of 47 billion euros, with which it also seeks to expand green energy sources. The bulk of these investments will go to the United States, a country that "provides a predictable, stable and attractive framework" and where the group has a significant presence, the Iberdrola chairman added. In this regard, Galán recalled that the group distributes electricity in New York, Connecticut, Massachusetts and Maine and that it has an important agreement with PNM Resources in New Mexico and Texas. In addition, "we are one of the three largest renewable energy companies in the country" with a presence in 23 states, he said. In his opinion, "the opportunities that the United States offers at the moment are great". Among others, he mentioned the incentives for electrification, materialised through support for green hydrogen projects, sustainable mobility and grid expansion. In relation to windfall profits, he said that "it makes no sense to ask companies that do not have excess profits to contribute". "It is clear that oil and gas companies do make these profits," but the cost of producing these fossil fuels or refining them does not grow as much as prices, he said. In this respect, he assured that Iberdrola is investing in grids, a regulated activity, because it is the basis for providing good service to the public and incorporating more renewable energies, in order to reduce dependence on fossil fuels. READ MORE
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11/11/2022Ignacio Galán, invested president of the Social Council of the University of Salamanca Ignacio Galán, executive president of Iberdrola, was invested this morning as President of the Social Council of the University of Salamanca (USAL) during a ceremony held in Valladolid with the President of the Regional Government of Castile and León, Alfonso Fernandez Mañueco, and the Regional Minister of Education, Rocío Lucas, in the presence of the rectors of all the public universities of Castilla y León, including Ricardo Rivero, Rector of the USAL. The Governing Council approved on 15 September, after the end of the previous term of office, the renewal in office of the executive president of Iberdrola, as well as the presidents of the Social Councils of the Universities of Burgos, León and Valladolid. Ignacio Galán thus begins his third term on the Social Council of the University of Salamanca, a body made up of 26 members from the social, business and economic world whose function is to guarantee the participation of Salamanca society in this institution and to represent the diverse social interests of Salamanca and the university community. Along with Galán, Luis Alfonso Abril Pérez, Luis Javier Cepedano Valdeón and Óscar Campillo Madrigal, presidents of the Social Councils of the universities of Burgos, León and Valladolid, respectively, have taken up their posts. The Social Council of the University of Salamanca agreed last Saturday to renew its members. Specifically, 15 of the 26 councillors have been renewed, so that 11 new appointments have been made. Pedro Díaz will chair the Economic-Financial Committee; Josefa García Barrado the Academic-Scientific Committee; the Social Relations Committee will be led by Carmen Escalera; Sergio Pérez will chair the Planning Committee; and finally, Miguel Ángel Martín Herrero will chair the Regulations and Compliance Committee. Boosting training and talent Ignacio Galán's firm commitment to the university world, training and the promotion of talent in all areas of its life has led him to support various academic initiatives that facilitate the preparation and specialisation of young people and their incorporation into the world of work. He holds Honorary Doctorates from the universities of Salamanca, Edinburgh and Strathclyde (Glasgow) and is a member of the Presidential Advisory Council of the Massachusetts Institute of Technology (MIT). Born in Salamanca, Ignacio Galán holds a degree in Industrial Engineering from the Higher Industrial Engineering School ICAI of the Comillas Pontifical University in Madrid, a diploma in Business Administration and Foreign Trade from ICADE of the Comillas Pontifical University and a diploma from the Escuela de Organización Industrial in Madrid. Galán is Executive Chairman of Iberdrola and Chairman of the Iberdrola group's subholding companies in the United Kingdom (ScottishPower), in the United States (AVANGRID, a company listed on the New York Stock Exchange) and in Brazil (Neoenergia, a company listed on BOVESPA). Since his arrival at Iberdrola in 2001, his commitment to international expansion and the need for electrification through renewable energies, smart grids and energy storage have transformed the company into one of the largest in the sector in the world, with a presence in dozens of countries such as Spain, United States, United Kingdom, Brazil, Mexico, Germany, Portugal, France, Italy and Ireland, as well as Australia, Poland, Sweden and Japan, and supplying energy to more than 100 million people around the world. In addition, the new president of the social council of the University of Salamanca is a member of the World Economic Forum (Davos), is president of the Renewable Hydrogen Coalition and is a member of the Executive Committee of the European Round Table for Industry (ERT) and of the International Council of JP Morgan. Among other awards, in 2020 he received the Management Leadership Award from the Spanish Quality Association and the Business Career Achievement Award from El Economista. In 2019, he was rated as one of the five most important CEOs in the world and the first in the utilities sector by Harvard Business Review, and as one of the 30 most influential leaders in the fight against climate change by Bloomberg. He also received the National Innovation and Design Award for Innovative Trajectory from the Ministry of Science, Innovation and Universities. In 2014, he was awarded the Commander of The Most Excellent Order of the British Empire by Queen Elizabeth II. READ MORE
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09/11/2022Iberdrola to invest record €47bn in the energy transition in 2023-2025; increases 2025 EBITDA and Net Profit outlook
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07/11/2022We partner with AXA IM for offshore wind energy development in France The Iberdrola group and AXA IM Alts today signed a Memorandum of Understanding to collaborate in the deployment of offshore wind energy in France. Under this agreement, the French firm will participate as a minority shareholder in the development of a 1000 wind farm in Normandy, should Iberdrola be awarded the project in the auction in which it has already been shortlisted. Bids for this tender, denominated AO4, will be sumitted on November 10 and the award is scheduled for the first quarter of 2023. The future site will be located more than 30 kilometers off the coast of Normandy, in an area with very favorable wind and seabed conditions for this technology. With this transaction - subject to obtaining regulatory approvals - AXA IM Alts advances its strategy of generating sustainable value for its clients with a high commitment to social impact, values it fully shares with the Iberdrola Group. With €184 billion of assets under management, AXA IM Alts has a key presence in France. In addition to this tender, Iberdrola has also been pre-qualified for the development of three other offshore wind energy projects each with a capacity of 250 MW. Two of them in the Gulf of León, in the waters of the Mediterranean Sea, which are expected to be awarded in the fall of 2023 and are scheduled for commissioning in 2030. The third project the company is bidding for is France's future first floating offshore wind farm, to be built some 20 kilometers off Pointe des Poulains, a peninsula at the northwestern tip of Belle-Île in Brittany. The French government plans to designate the winner of the tender next spring, so that it can start operating in 2030. 2.5 billion investment in the Saint-Brieuc park Iberdrola is currently completing the Saint-Brieuc wind farm , which will be the group's first large offshore wind farm in France. With almost 500 MW of capacity, it will generate enough clean energy to meet the electricity consumption of 835,000 people, once it enters into operation in 2023. Located some 16 kilometers from the coast, it will cover an area of 75 square kilometers. Its construction involves an overall investment of around €2.5 billion. This new facility demonstrates Iberdrola's commitment to the French market, where the company plans to invest some €4 billion by 2025, mainly in renewable projects. The project involves the creation of more than 2,700 jobs, half of them in Galicia and Asturias thanks to Iberdrola's award of the largest offshore wind contract to date won by Navantia-Windar. The plant will become the company's fourth offshore wind farm in operation, after West of Duddon Sands, located in the Irish Sea; Wikinger , in the Baltic Sea; and East Anglia ONE , one of the world's largest offshore wind developments, located in the southern North Sea. Offshore wind, key to Iberdrola's growth The company also has three other large offshore wind farms currently under construction. In the UK, construction has begun on the East Anglia Three offshore wind farm, which will have a capacity of 1,400 megawatts (MW), enough to supply 1.3 million homes with clean energy, more than the populations of Liverpool and Glasgow combined. This new facility, located off the coast of Norfolk, near the London metropolitan area, will form part of the East Anglia Hub macro-complex, together with the future East Anglia One North and East Anglia Two developments. This hub is the Iberdrola group's largest initiative of this technology in the world and will involve an investment of £6.5 billion (around 7.7 billion euros) for the installation of 3,000 MW. In the United States, Iberdrola is building what will be the country's first commercial-scale wind farm, Vineyard Wind 1 (806 MW), off the coast of the state of Massachusetts, with an investment of around €2.5 billion. This facility will be able to meet the energy needs of more than 400,000 homes and will prevent the emission of more than 1.6 million tons of CO2 per year. In Germany, the group has started to build its second major offshore wind initiative in the country, after Wikinger . The 476 MW wind farm, called Baltic Eagle , will be able to meet the demand of 475,000 homes and avoid the emission of almost one million tons of CO2 into the atmosphere each year. The company also plans to develop a third offshore project in this area: Windanker (300 MW). Together, the three renewable facilities will give rise to the largest offshore wind complex in the Baltic Sea, with a total installed capacity of 1,100 MW and a combined investment of approximately €3.5 billion. Offshore wind power is one of the keys to Iberdrola's growth. Just as the group was a pioneer in its commitment to onshore wind energy two decades ago, the company is leading the development of offshore wind power. Iberdrola has a portfolio of projects in the United States, the United Kingdom, Germany, Poland, Sweden, Ireland, Taiwan, Japan, the Philippines and Brazil, which could increase in the coming years thanks to the numerous auctions in which it is participating. READ MORE
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07/11/2022We sign the first syndicated loan together with CaixaBank and BNP Paribas with Cesce's coverage Iberdrola, CaixaBank, BNP Paribas and Cesce have taken a decisive step to boost green finance in Spain. CaixaBank and BNP Paribas have signed a €500 million syndicated green loan with Iberdrola, backed by Spain's Export Credit Agency (ECA), Cesce. The loan has a maximum term of 15 years. The agreement was signed at the Ministry of Industry, Trade and Tourism in the presence of the Secretary of State for Trade, Xiana Méndez, who accompanied the representatives of the four companies involved. Méndez highlighted that "this operation reflects the commitment of Spain’s Government to the objectives of the Paris Agreement and to achieving a net zero economic model by 2050, recasting Cesce's portfolio towards the fight against climate change". CaixaBank and BNP Paribas, in addition to being financiers, were the entities exclusively responsible for the structuring, management, coordination and underwriting of the facility, both obtaining the titles of Mandated Lead Arrangers, Bookrunners and Sustainability Coordinators, granted by Iberdrola, with CaixaBank acting as Agent and ECA Coordinator. The funds will be allocated to finance renewable wind and photovoltaic projects, as well as battery and transmission grid projects in the UK, Ireland, Portugal and Poland. This is the first operation under Cesce's new Green Investment Policy, aimed exclusively at financing climate-related investment projects by Spanish companies outside Spain. Total renewable capacity under this placement is expected to reach 650 MW. It will also enable the renewal and development of the UK's transmission networks with the aim of achieving net zero in the UK by 2050. Export Credit Agencies (ECAs) exclusively manage credit and investment insurance on behalf of States, covering the political, commercial and extraordinary risks associated with internationalisation. The credit insurance for the green loan will be provided by Cesce, while the funds for the operation will come from CaixaBank and BNP Paribas. This green loan will strengthen the diversification of Iberdrola's sources of financing. Fernando Salazar, Chairman of Cesce, said that "this agreement is very significant for the insurer, firstly because it is an example for other companies and financial institutions, and also because it shows that we have created products aimed at sustainable projects that provide real solutions in favour of a more conscious and responsible economic activity". Iberdrola strengthens global leadership in green finance With this new loan, Iberdrola continues to strengthen its leadership in ESG financing, with more than €44.6 billion outstanding, of which over €22.7 billion correspond to green financing and around €21 billion euros to credit lines, loans or commercial paper programmes subject to compliance with sustainability goals. The projects to be funded by this new loan are aligned with the following UN Sustainable Development Goals (SDGs) on which Iberdrola focuses its efforts: number 7 - Affordable and Clean Energy - and number 13 - Climate Action. CaixaBank, European benchmark in sustainability Within the framework of its new 2022-2024 Strategic Plan, CaixaBank has established as a strategic priority to become a sustainability benchmark in Europe, for which it has set a target of mobilising €64 billion in sustainable finance to drive the transition of companies and society. In this context, CaixaBank's Corporate, Institutional and International Banking division (CIB&IB) has mobilised €9.5 billion in sustainable financing during the first half of 2022, 28% more than the same period in 2021. According to the League Table Green Use of Proceeds Top Tier Lender of Bloomberg, one of the most prestigious financial information agencies, CaixaBank has become the leading green lender in Europe in the first half of the year. BNP Paribas, pioneer and European leader in sustainable finance The BNP Paribas Group is committed to supporting the transition to a sustainable and inclusive economy, while ensuring its performance and stability. As Europe's leading bank for companies and institutions, it provides a full range of expertise on the transition to a sustainable economy, as well as strategies for channelling financial flows to projects and companies that are building a low-carbon world. BNP Paribas Group aims to provide more than €350 billion by 2025 through environmental, social loans and bond issuance, building on its strong track record: it is number one in EMEA and number two worldwide in green and sustainable bonds by volume, as a bookrunner, according to Dealogic's ranking at the end of 2021. The Group also aims to reach €300 billion in sustainable and responsible investments by 2025. In 2022, Euromoney named BNP Paribas the world's best bank in sustainable finance and the world's best bank in ESG data and technology for the second year in a row. Sustainability, a pillar of Cesce's Strategic Plan 2021-2014 Cesce has always ensured that environmental and social standards in line with best practice in each sector are applied to the projects it supports on behalf of the State, in accordance with OECD regulations that apply to export credit. With Cesce's latest Strategic Plan, however, sustainability takes on vital importance for the company and it is no longer just a matter of ensuring compliance with regulations, but rather the objective of its activity, helping companies to transform their production models, making them compatible with Spain's commitments in the fight against climate change. This plan includes the Green Export and Investment Insurance Policies guaranteed by the State. The former set up incentives in the form of lower costs and deadlines and greater flexibility in determining eligible amounts, among other advantages. The Green Investment Policies, on the other hand, are a completely new product to support the financing of Spanish companies' green investments outside Spain. READ MORE
