FINANCIAL STRATEGY

A diversified investor base and reduced financing risk

 2018-2022 Outlook. 07 - Financial Management Outlook [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 2018.

Adjusted Net Debt and Pro forma credit metrics.

Debt as at 30 September 2018 can be broken down by product source, 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 2018:

Iberdrola Group's liquidity position at 30 September 2018
CREDIT LINE MATURITIES (Eur M) AVAILABLE
TOTAL CREDITS LINES 8,979
CASH & SHORT TERM FINANCIAL INVESTMENTS 1,419
TOTAL ADJUSTED LIQUIDITY(1) Nota 10,398

(1) Nota Excluding Neoenergia.