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What is the "Iberdrola Retribución Flexible" system?

All the information about the optional dividend system

The optional dividend system "Iberdrola Retribución Flexible" offers shareholders the option to choose whether they prefer to receive all or part of their remuneration in new shares of the company or in cash.  

This system is implemented through a capital increase charged to reserves and the payment of a cash dividend. All shareholders receive a free allocation right for each share they hold on the reference date, and those who wish to receive the dividend in cash must expressly waive these rights. 

As a result, for the January 2025 edition of the "Iberdrola Retribución Flexible" optional dividend, shareholders will be able to choose from the following remuneration options(1):  

a) Receive new shares completely free of charge;  

b) Receive cash by selling all or part of their free allocation rights on the market;  

c) Receive cash by collecting the Interim Dividend for the 2024 fiscal year.  

Shareholders may combine any of the above options for different groups of shares they hold.

The value of the remuneration that shareholders will receive under options (a) and (c) will be equivalent (in terms of market value, subject to applicable tax).  

Iberdrola shareholders who opt for the Interim Dividend will receive €0.231 gross per share. On the other hand, shareholders who choose to receive new shares will need 58 free allocation rights to receive one new share of the company.

(1) We recommend checking the deadlines for each option with your bank as they may have specific details.

 

“Iberdrola Retribución Flexible” system

Practical Example

Free capital increase charged to reserves
1 share on the record date: 1 free allocation right

  • Shareholder with 1,000 shares on the record date will receive

    1,000

    rights

  • Number of rights needed to get a new share

    58

    rights

  • Amount of the Interim Dividend

    0.231

    euros

The Shareholder has three options
withholding tax

  • Receive newly issued Iberdrola shares
    without
    The shareholder receives 17 newly issued Iberdrola shares 1
  • Sell the free allocation rights in the market
    with
    The shareholder receives 187.11 net euros2
  • Receive the Interim Dividend
    with
    The shareholder receives 187.11 net euros3

In addition, shareholders do not need to choose one of the options, as they can combine them according to their requirements."

  • (1) The new shares will be delivered to shareholders free of charge and fees. In accordance with the applicable law, the custodian of your shares will be entitled to charge the management fees and expenses it deems appropriate, including fees for processing purchase and sale orders of the free allocation rights.
  • (2) On the assumption of the sale of the rights at 0.231 euros. The total amount of the sale is subject to IRPF withholding tax.
  • (3) The Interim Dividend will be subject to a 19 % withholding tax.