Iberdrola, ICO, Sabadell and HSBC sign a 500 million euro syndicated green loan with coverage from Cesce

08 agosto 2024

  • The funds will be used to finance renewable projects in the United States, Australia and Italy
  • It is the first loan from the ICO-Verde line that uses Next Generation Funds for the development of renewable energies
  • The operation is backed by Cesce on behalf of the State through its Green Investment Policy

 Iberdrola, ICO, Sabadell and HSBC have signed a syndicated green loan for an amount of 500 million euros that is covered by Cesce on behalf of the State through its Green Investment Policy, which is guaranteed by the Internationalisation Risk Reserve Fund (FRRI for its Spanish initials), attached to the Ministry of Economy, Trade and Enterprise. The green loan, repayable over a 15-year term, provides extra diversification to Iberdrola's funding sources. 

This is the first loan aimed at boosting renewable energy projects that ICO will finance with the Next Generation funds in the second phase of the Recovery Plan. The operation is part of the ICO-Verde programme, which begun with the signing of the agreement between the Ministry of Economy, Trade and Enterprise and ICO. Funds of the operation will go to financing renewable wind and photovoltaic farms, as well as battery projects in the US, Australia and Italy. The total renewable capacity financed will reach 897 MW and is expected to be operational between 2025 and 2026. 

The total amount of Iberdrola's loans covered by Cesce and other Export Credit Agencies (ECAs) amounts to 2.5 billion euros. These entities exclusively manage credit and investment insurance on behalf of states, covering the political, commercial and extraordinary risks associated with internationalisation.



 

This loan contributes to the diversification of Iberdrola's financing, which is able to combine various sources: capital markets, financial institutions, development banks such as the World Bank or the European Investment Bank (EIB) and state agencies for the promotion of exports that reduce or eliminate its operational risk.

Cesce, in its role as a Spanish Export Credit Agency (ECA), exclusively manages credit and investment insurance on behalf of the State, thus covering the political, commercial and extraordinary risks associated with the internationalisation of Spanish companies. Its Green Investment Policy, in particular, covers the risks on loans granted to Spanish companies or their foreign subsidiaries for the financing of overseas projects that are considered as sustainable, as they comply with the requirements of the EU Taxonomy or Annex I of the OECD Consensus. 

About Iberdrola

Iberdrola is Europe's largest electricity company in terms of market capitalisation and one of the top three utilities in the world, a leader in renewable energies and a pioneer in the energy transition towards a low-emission economy. The group supplies energy to some 100 million people in dozens of countries and develops its renewables, networks and commercial activities in Europe (Spain, United Kingdom, Portugal, France, Germany, Italy and Greece), the United States, Brazil, Mexico and Australia, and maintains markets such as Japan, Taiwan, Ireland, Sweden, Poland, and others as growth platforms.  

With a workforce over 42,000 strong and assets in excess of 150 billion euros, its revenues in 2023 amounted to nearly 50 billion euros, a net profit of 4.803 billion euros and made a 9.3 billion euro contribution to the public coffers in the countries where it operates. The company contributes to the maintenance of 500,000 jobs with purchases of more than 18 billion euros in 2022. A leader in the fight against climate change, it has committed more than 160 billion euros over the last two decades to building a sustainable economy energy model based on sound environmental, social and governance (ESG) principles.

About Cesce

Cesce is the head of a group of companies that offers comprehensive solutions for commercial risk management and the issuance of surety insurance and guarantees in Europe and Latin America. In its activity as an Export Credit Agency (ECA) on behalf of the Spanish State, it manages export credit insurance and medium and long-term risk coverage for electro-intensive consumers, a performance that has been recognised by TXF to rank Cesce as the best-rated ECA in the world in 2024. The company drives the long-term growth of its more than 135,000 customers by providing them with smart trade credit management solutions that span the entire business value chain - market research, risk management and transfer, and access to finance - and surety and guarantee solutions that enable them to take on new projects and businesses. After more than 50 years in the market, the company has proven to be a stable group and the most solvent of the main Spanish and European credit and surety insurance companies with a solvency ratio of 258% at the end of the financial year 2023.