The Iberdrola Tower in Bilbao. Image by Iberdrola. (www.iberdrola.com)
Spanish utilities group Iberdrola SA (BME:IBE) has signed a EUR-2.5-billion (USD 3bn) multi-currency credit line linked to two the UN’s 2030 Sustainable Development Goals (SDGs).
As much as 21 banks put their signatures on the loan, with Iberdrola saying that it had secured it under pre-COVID conditions and at rates similar to the ones it is paying for the March 2019 facility.
The new credit line has a five-year terms, with an option for a two-year extension, and is referenced to risk-free rates (RFR) instead of LIBOR, a first time for any Spanish company, according to Iberdrola.
Banco Bilbao Vizcaya Argentaria SA (BME:BBVA) served at the agent bank and sustainability coordinator alongside UniCredit SpA (BIT:UCG).
The financing is conditioned upon Iberdrola sticking to SDGs related to reducing emissions and placing more women in the position of leadership within the company. The group said it managed to cut CO2 emissions by 11% to 98 grams per kilowatt-hour (g/kWh) in 2020.
The 2025 target for carbon dioxide emissions target is set at below 70 g/kWh.
Iberdrola has set out to have women occupy 30% of leadership positions in 2025, but did not say how close it is to this goal.
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