FINANCIAL STRATEGY

A diversified investor base and reduced financing risk

 Outlook 2018-2022 Update presentation [PDF]

Debt capital represents an important financing source for the Iberdrola group. Central to Iberdrola's financial strategy is its target financial ratios.

Iberdrola seeks to, whenever possible, centralize its financing activities, however there are circumstances when the group considers it necessary to arrange finance at the subsidiary level. This means that the majority of financing is conducted at the Iberdrola S.A. level or conducted through instruments with the guarantee of Iberdrola S.A.

Iberdrola S.A. places importance on having a diversified investor base and on reducing financing risks. Iberdrola therefore issues in different markets, currencies and with varying maturities.

The illustrations below show Iberdrola group's solvency ratios and adjusted net debt at 30 September 2020 showing the financial strength of the group.

Net Debt of the group. Credit metrics improvement. Net debt and pro forma adjusted credit metrics.

Debt as at 30 September 2020 can be broken down by currency and interest rate, as follows:

This debt can be broken down by financing source as follows:

The slide below shows Iberdrola Group's liquidity position and debt maturity profile 30 September 2020:

Iberdrola group's liquidity * position at 30 September 2020
LIQUIDITY (Eur M) AVAILABLE
CASH AND CASH EQUIVALENTS 2,067
BACK-UP FACILITIES 7,300
CREDIT FACILITIES 2,306
ARRANGED FINANCING 2,141
TOTAL 2,067

* Includes operations signed after 30 September.