Company news - Iberdrola

20/11/2024 - 19:38 UTC +01:00

José Saiz Armada, Director of Finance, Control and Corporate Development (CFO) of Iberdrola; Antonio Lorenzo, Head of the EIB's Corporate Finance Division in Spain; and Inés Carpio San Román, Director General of International Finance of the Treasury.

19/11/2024 - 08:08 UTC +01:00

This issue attracted the interest of more than 80 investors with a long-term vision.

Iberdrola launches first green bond issue by a Spanish company in Australia Iberdrola continues to diversify its sources of financing. The company chaired by Ignacio Galán today issued green bonds for AU$ 750 M –about €460 M–. It is the first non-financial Spanish company to issue in this market, known as a 'kangaroo'. The issue was in two tranches – AU$ 350 M (€215 M) for a six-year term and AU$ 400 M (€245 M) for a 10-year term – with demand reaching AU$ 2.1 B in aggregate, implying it was oversubscribed by 2.8. Thanks to strong interest from investors , who once again support the strategy of Europe's largest electricity company by market capitalisation, the weighted average cost of the operation was set at less than 5.65%, for an average life of more than 7 years. This issue attracted the interest of more than 80 investors with a long-term vision, including Asian investors in addition to Australians. Those committed to the ESG had a relevant presence, thanks to the green nature of the operation, which will finance future investments in the renewable business in the country. The company's ability to access the financing markets is reaffirmed with this transaction, as well as its strategy of diversifying in the capital markets as market weather improves. In addition to the operations carried out in the Euromarket (in January, July and September), Iberdrola is now the only European utility to have operated in 2024 in the Swiss (June), British (October) and Australian (November) markets, which, together with a private placement in Norwegian kroner in September, positions the Group before a wide range of financing possibilities in capital markets. The Australian transaction comes a month after results were presented for the first nine months of the year, where Iberdrola reported a net profit of €5,471 M and set its net profit growth at 14% – before extraordinary items – for the year as a whole. The banks involved in the placement were Deutsche Bank, Mizuho, ANZ, Sumitomo and MUFG. Today's issue is the seventh public transaction in the market so far in 2024. The first was the €700 M hybrid bond issued in January, the second, in the Swiss market for 335 M francs at the end of June, the third, the €750 M senior bond issued in July , the fourth took place in August, when Iberdrola placed $525 M (€490 M) through its US subsidiary , the fifth was on 23 September, when it placed €2.15 B in its largest-ever senior debt issue , and the sixth just a month ago when the company closed its first green bond in pounds sterling in the last 15 years for 500 M (€595 M) with strong backing from investors. International confidence The market's confidence in Iberdrola is solid. In addition to debt issues, a few days ago the electricity company signed a 120 M loan with the European Investment Bank (EIB) to develop energy innovation projects. It has also extended its alliance with the World Bank with a 300 M green loan for renewable projects in emerging countries. In addition, it signed a €500 M green syndicated loan with Cesce coverage with ICO, Sabadell and HSBC, and in the first quarter of 2024 it signed another €700 M green loan with the European Investment Bank to build up electricity grids in Spain. At the end of December 2023, the company signed its largest credit line in history for €5.3 B with 33 international banks . The cost of this operation was at the most competitive levels for Iberdrola, with prices similar to those of 2019, and the operation was oversubscribed by more than 40%, demonstrating the bank’s strong commitment to Europe's leading utility by capitalisation. This financial strategy complements the historic investment plan launched by the company in March 2024. This roadmap, the implementation of which is a year ahead of schedule, aims to drive the economy’s electrification, with a strong focus on electricity grids and renewables. READ MORE

24/10/2024

Iberdrola closes its largest issue of green bonds in sterling for 15 years with strong support from investors Iberdrola continues to diversify its sources of financing. The company, chaired by Ignacio Galán, has issued 12-year green bonds for 500 million pounds (600 million euros). This is Iberdrola’s largest issue in sterling since 2009. The company last issued a bond in Sterling in 2019, through its subsidiary Scottish Power Transmission. In addition, it is its first green bond Iberdrola has issued in sterling. Iberdrola becomes the only European utility able to access EUR, GBP and CHF in 2024. Demand exceeded 2.1 billion pounds (2.5 billion euros), and this has allowed the spread over the reference interest rate to be reduced to 95 basis points (from the initial 125 basis points). This is the largest reduction recorded in this market by a recurring issuer this year. The coupon has been set at 5.25%, after attracting the interest of more than 140 investors (the largest number for a corporate issuer in the sterling market this year), especially those committed to ESG, thanks to the green nature of the transaction, which will finance future investments in the United Kingdom in the renewables business. Barclays, HSBC, Goldman Sachs and NatWest all participated in the issue. Iberdrola is the only Spanish corporation to access the GBP market in 2024. This is the sixth public transaction by Iberdrola in the market so far in 2024. The first was the hybrid bond of 700 million euros issued in January; the second, in the Swiss market for 335 million francs at the end of June; the third, the senior bond for 750 million euros issued in July; the fourth was carried out in August, when Iberdrola placed 525 million dollars (490 million euros) through the US subsidiary; and the fifth took place on September 23, when it sold 2.15 billion euros in the largest issue of senior debt in its history. The rate achieved is equivalent to that which would have been obtained in the Euromarket, with additional value of diversification of currency. The cost obtained is equivalent to the result that would have been obtained in the Euromarket, with the beneficial diversification effect of having achieved it in an alternative market. With this operation, Iberdrola becomes the only Spanish corporate issuer to access the sterling market in 2024, as well as the only European utility to have accessed the euro, Swiss franc and pound market in 2024. International confidence Market confidence in Iberdrola is constant. In addition to debt issues, last Monday the utility signed a 120 million loan with the European Investment Bank (EIB) for the development of energy innovation projects. It has also extended its partnership with the World Bank with a 300 million green loan for renewable projects in emerging countries. In addition, it has signed a EUR 500 million syndicated green loan with Cesce coverage together with ICO, Sabadell and HSBC, and in the first quarter of 2024 it signed another EUR 700 million green loan with the European Investment Bank for the expansion of electricity grids in Spain. At the end of December 2023, the company signed its largest credit line in history for 5.3 billion euros with 33 international banks . The cost of this operation was at the most competitive levels for Iberdrola, with prices similar to those of 2019, and the operation was oversubscribed by more than 40%, demonstrating the strong commitment of the banks to Europe's leading utility by capitalisation. This financial strategy complements and strengthens the historic investment plan launched by the company in March 2024. This roadmap, the implementation of which is a year ahead of schedule, aims to drive the electrification of the economy, with a strong boost to electricity grids and renewables. READ MORE

23/10/2024 - 08:17 UTC +02:00

Ignacio Galan, Executive Chairman of Iberdrola.

Highest investment period boosts Iberdrola's results to record levels Commenting on the results, Ignacio Galán, Executive Chairman of Iberdrola, said: “2024 has been a very good year so far for Iberdrola. Strong operational performance has benefited our results, especially in the US and the UK, thanks to record investments. Our continued major investment drive is delivering new renewables projects and regulated assets, and the contribution to results of our increased offshore wind capacity underlines the reason why investment in this technology was a key pillar in our strategic plan. “This year we have been delivering against the objectives of our plan to 2026, as well as actively setting the course to strengthen the resilience of the group in the longer term. We are seizing new opportunities in the UK and US and building our pipeline in other strong markets around the world. With the Avangrid and Electricity North West acquisitions progressing as planned, and major new organic investment opportunities in networks and renewables, we will continue with our disciplined growth strategy from 2027 to 2030 and beyond.” READ MORE

22/10/2024 - 17:39 UTC +02:00

The acquisition accelerates Iberdrola's commitment to grow its electricity networks business.

Iberdrola closes the purchase of the British distributor ENW Iberdrola has today closed the acquisition of 88% of Electricity North West (ENW) in the UK. The deal values 100% of the company, including debt, at approximately €5 billion. This acquisition is part of Iberdrola's strategy to strengthen its network business in countries with strong ratings, such as the UK's AA credit rating. With this acquisition, the UK becomes the company's primary market in terms of network asset base value (€14 billion), followed by the US (€13.3 billion ), as at the end of the first half of 2024. Geographically, ENW is located in a prime area for Iberdrola, between the two existing ScottishPower networks license areas, in central and southern Scotland and Merseyside and North Wales. ENW distributes electricity to almost five million people in the North West of England, in locations such as Manchester and the Lake District and has approximately 60,000 km of electricity distribution networks. The acquisition accelerates Iberdrola's commitment to grow its electricity networks business, with the company now becoming the second largest electricity network operator in the UK. Iberdrola will now distribute electricity to around 12 million people in the UK, across a network which will span more than 170,000 kilometers. In addition, Iberdrola will employ more than 8,500 people in the country. Iberdrola and a consortium of investors from Japan, led by Kansai, which will retain 12% of ENW's capital, have signed a shareholders' agreement to collaborate on a long-term basis. The transaction is subject to review by the UK Competition and Markets Authority (CMA), according to the applicable regulations to this type of transactions. A story of growth in the UK Since the merger with ScottishPower in 2007, the UK has been a major investment destination for Iberdrola. Last week the company's executive chairman, Ignacio Galán, announced Iberdrola’s plans to double its investment in the UK, with £24 billion earmarked for networks and renewables between 2024 to 2028. ScottishPower is the only 100% green integrated utility in the UK. Two-thirds of the investment planned by the company will be directed to the distribution and transmission networks. Transmission investments are set to increase under the regulatory framework from 2026 to 2031, known as RIIO-T3, which will be approved next year. The investments will include, for example, the new Eastern Green Link 1 subsea interconnection. The merger between ScottishPower and Iberdrola in 2007 was part of the company’s long-term strategy to become a world leader in the global energy market. Since then, the company has had high growth and is the only vertically integrated energy company in the country. ScottishPower is one of the largest investors in renewables in the country, owning and operating the transmission grid and distribution networks in south-central Scotland as well as the distribution network in Merseyside, North Wales and Cheshire. The company has more than 111,400 km of installed power lines in the country and 40 onshore and 2 offshore wind farms in operation, with a renewable capacity of 3,000 MW, capable of supplying the equivalent of more than two million homes. This allows it to generate 100% of its energy free of emissions. As part of its growth plans , Iberdrola is currently constructing the 1,400 MW East Anglia 3 offshore wind farm. The East Anglia 2 (960 MW) project recently secured a CfD contract and will see investment of around £4 billion (around €4.8 billion euros). This project will provide enough green energy to power the equivalent of close to one million homes. The company also continues to invest in new onshore wind, solar PV and battery projects. READ MORE

21/10/2024

EIB and Iberdrola sign 120 million loan for energy innovation projects in Spain The European Investment Bank (EIB) today signed a EUR 120 million loan with Iberdrola to finance the development of energy technology research and innovation projects aimed at contributing to and accelerating the electrification and decarbonisation of the economy. The total investment associated with the project will be €250 million. The EIB funding will be used to boost innovation in renewable energy technology projects such as solar photovoltaic, hydro and wind power, as well as hybridisation and agrovoltaic projects, among others. Technologies for the decarbonisation of demand, such as green hydrogen or heat pumps, will also be studied and developed. New solutions will also be investigated to facilitate the integration and management of renewables, boost storage and optimise energy efficiency along the entire value chain. In the area of grids, investment will go to digitisation, advanced data management and power electronics projects to promote smart grids. It also includes initiatives aimed at increasing the cybersecurity and resilience of these networks. In the commercial area, projects will contribute to the development of smart and customised solutions to promote self-consumption and electric mobility. These initiatives are part of the company's 2024-2026 strategic plan to accelerate its decarbonisation and contribute to the electrification and digitalisation of the global economy. The financing agreement contributes to economic, social and territorial cohesion, as it is estimated that around 27% of the total associated investment is expected to go to regions whose per capita income is below the EU average. EIB commitment to energy security and innovation In 2023, the EIB Group provided more than EUR 21bn in financing for energy security in Europe. In Spain, this objective amounted to EUR 4.513 billion in the same year, earmarked for financing renewable energy, energy efficiency, electricity grids and storage systems projects, among others. These investments are helping Europe to accelerate the transition towards the use of sustainable energy and reduce its dependence on fossil fuel imports. You can find out more about the EIB's support for the energy sector . Iberdrola's commitment to energy innovation Iberdrola is promoting an energy model based on electrification through the incorporation of new clean and efficient technological solutions. The company intends to double its investment in this area and exceed 4,000 million euros of accumulated investment in Innovation, Development and (R&D&I) activities by 2030. These resources are intended to be used primarily for projects related to renewable energy, smart grids, digital transformation, green hydrogen and the development of customer solutions. Aiming to accelerate decarbonisation to address the climate crisis, improve energy security, competitiveness and sustainable job creation across the value chain. The company has been recognised by the European Commission as the world's leading private electric utility in terms of R&D investment in its latest report 'The 2023 Industrial R&D Investment Scoreboard'. General information About the EIB The European Investment Bank is the long-term financing institution of the European Union, whose shareholders are its Member States. It finances sound investment that contributes to the EU's public policy objectives . EIB projects foster competitiveness, drive innovation, promote sustainable development, strengthen social and territorial cohesion, and support a fair and smooth transition to climate neutrality. The European Investment Bank Group (EIB Group), comprising the European Investment Bank (EIB) and the European Investment Fund (EIF), reported total financing signed in Spain in 2023 of EUR 11.4bn, of which approximately EUR 6.8bn went to climate action and environmental sustainability projects. In terms of total activity, the EIB Group signed EUR 88bn in new financing in 2023. About Iberdrola and its commitment to sustainable financing and the decarbonisation of the country Iberdrola continues to advance in its commitment to sustainability, based on the electrification of the economy, through clean energy, and oriented towards the fight against climate change and the creation of wealth and employment in the communities in which it operates. At the end of the first half of 2024, the group already had green or sustainability-linked financing of more than 56 billion euros, including more than 21.3 billion euros in green bonds. READ MORE

17/10/2024 - 09:00 UTC +02:00

Iberdrola has established itself as one of the companies that contributes the most to taxation in the countries where it operates.

Iberdrola, the only Spanish company to obtain the international Fair Tax certificate Iberdrola has been awarded the Fair Tax Mark, an accreditation for companies that pay taxes responsibly around the world. The Fair Tax Foundation is a non-profit organisation that promotes tax fairness and transparency in corporate tax practices. It seeks to encourage and recognise organisations that pay the right amount of corporate tax at the right time and in the right place. Some 250 different commercial companies currently hold this Fair Tax Mark accreditation, but none of them are Spanish. Jaime Boswell, Director of Accreditation at the Fair Tax Foundation, said, "It’s fantastic that Iberdrola is flying the flag for fair taxation as the first Fair Tax Mark accredited company in Spain. It’s leading the way for others to follow. Its tax transparency report is really comprehensive. It contains information on the group's taxes in several jurisdictions, including its public country-by-country reporting, as well as significant cash tax contributions. It is exactly the level of detail we are looking for when awarding the Fair Tax Mark". Contribution to the community where it works Iberdrola has established itself as one of the companies that contributes the most to taxation in the countries where it operates. Its commitment to public administrations resulted in a historic contribution of almost 9,300 million euros. A total of 9,281 million euros were last year, 24% more than in 2022, according to the group's fiscal transparency report. This figure is equivalent to more than one million euros per hour. Spain is the country in which the company contributes the most of all those in which it is present. It is now close to 3,500 million euros, which represents an increase of 35%. The positive impact on society of the business electricity company chaired by Ignacio Galán is reflected both in its commitment to a sustainable model, which promotes the economy and employment, and in its fiscal contribution. In the last five years, the contribution to the public coffers of the more than 25 countries in which the electricity company operates has exceeded 40,000 million euros. Iberdrola's historic contribution in 2023, considering only taxes affecting the income statement, was 44% of its profit before taxes and social security. The increase in Spain was mainly due to electricity taxes –like the 1.2% levy on sales and the tax for water used to produce power–. Apart from the significant increase in corporate income tax, other taxes practically doubled. In Spain, taxes and charges affecting the income statement, excluding corporate income tax, represent 123% of net operating expenses, a very striking figure compared to the same percentage in the rest of the world (22%). Iberdrola's total contribution by country is led by Spain (3,482 million euros), followed by Brazil (2,530 million euros), the United States (1,261 million euros), the United Kingdom (1,119 million euros) and Mexico (310 million euros). The rest of countries contributed 579 million euros. READ MORE

16/10/2024 - 09:00 UTC +02:00

Iberdrola has incorporated the Sustainable Development Goals (SDGs), defined by the United Nations for the 2030 horizon, into its business strategy and sustainability policy.

Iberdrola, among the Top 10 companies with the greatest global impact according to the technology firm RGS Iberdrola has been chosen as one of the 10 most impactful companies in the world by Richmond Global Sciences (RGS), a global technology firm that enables investors and companies to integrate an impact perspective into their decision making. RGS determined this through its new platform that offers impact data based on artificial intelligence and portfolio analysis on environmental, social and financial aspects. The electricity company chaired by Ignacio Galán has been chosen as one of the most outstanding listed companies in the world in terms of its environmental, labour and customer impact. RGS has partnered with the International Foundation For Valuing Impacts (IFVI), an independent non-profit organisation that is developing and expanding the practice of impact accounting. The mission is to analyse the unquantified costs and benefits that companies have on the environment and society. Iberdrola is a global bellwether and is on the main international sustainability indices , which include, in addition to those mentioned above, Moody's ESG, MSCI, Sustainalytics, ISS-ESG, Bloomberg GEI, EcoVadis, and FTSE4Good, among many others. Iberdrola aims to achieve emissions neutrality in its generation, electricity distribution and own consumption plants by 2030 (scopes 1 and 2) and to achieve net zero emissions in all its activities by 2040. Iberdrola has been included for yet another year in one of the most prestigious indices on climate change in the world, CDP Climate Change , with the maximum score. Iberdrola is one of a small number of companies that earned an "A" rating out of more than 23,000 companies analysed. For its part, the Fitch Sustainable rating agency gave Iberdrola a 'Green' rating, the highest in green transition. According to the agency's assessment, the company has a credible transition plan and has already oriented a large part of its business model towards "greener" activities. Leading in sustainability Iberdrola has incorporated the Sustainable Development Goals (SDGs), defined by the United Nations for the 2030 horizon, into its business strategy and sustainability policy, and is a role model for its direct contribution to the global goals, especially its contributions in the field of energy and climate change. The company focuses its efforts on the provision of affordable and clean energy (goal 7) and climate action (goal 13), while contributing directly to ensuring clean water and sanitation (goal 6), has increased its investment in R&D&I activities (goal 9), promotes respect for the life of land ecosystems (goal 15) and works to build partnerships to achieve the goals (goal 17). READ MORE

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