Spanish multinational electric utility company Iberdrola has signed a EUR5.3bn credit line, with the conditions of the credit tied to a series of environmental, social, and governance (ESG) targets, as reported by ESG Today on December 21. Under Iberdrola’s agreement with 33 international banks, rates on the credit line are subject to the fulfillment of two strategic ESG objectives, including reducing its scopes 1, 2, and 3 carbon emissions and raising the percentage of women occupying relevant leadership positions in the company. The rates agreed for the credit line can be adjusted annually according to the attainment of objectives.

Iberdrola has positioned itself as a global benchmark in sustainable finance. The group emerged as the first Spanish company to issue green bonds in 2014, currently holding almost EUR20bn of outstanding green bonds. Notably, more than 96% of the firm’s credit lines are sustainability-linked. The latest refinancing operation aligns with Iberdrola’s 2021 plan to raise the share of green and sustainable products in its financing structure, expected to account for two-thirds of its debt by 2025. In addition, the operation extended Iberdrola’s sustainability targets to encompass gender equality and empowerment. As part of the agreement with 33 international banks, the firm set out a target to increase the presence of women in relevant leadership positions to 35% by 2030.

S****ources:

https://www.esgtoday.com/iberdrola-signs-e5-3-billion-credit-line-with-rates-tied-to-climate-diversity-goals/

https://www.iberdrola.com/press-room/news/detail/iberdrola-signs-its-largest-ever-credit-line-for-53-billion-with-33-banks