Continuing the transition of its capital structure towards sustainable finance, global energy and electricity provider Iberdrola announced today that it a new €2.5 billion credit line linked to the company’s water footprint. The multi-currency line was signed with a consortium of 24 international banks.
Last year, Iberdola announced plans for its financing structure to have an increasingly higher percentage of green and sustainable products, estimated to account for nearly two-thirds of its debt by 2025. With today’s agreement, more than 90% of the company’s credit lines are sustainable.
The new credit line is subject to two sustainability indicators, including the reduction in consumption of water used in power generation, and to its CDP water rating, with margins on the debt adjusted upward or downward depending on performance on the indicators.
Iberdrola noted that many of its the credit lines were already focused on contributing to the UN Sustainable Development Goals (SDGs) 7 and 13, clean and accessible energy and combating climate change. The group now also aims to make a contribution to SDG 6, clean water and sanitation.
In a statement announcing the new credit agreement, Iberdrola stated:
“Iberdrola, aware of the importance of the use of water in the management of its activities, wishes to make a significant contribution to SDG 6: Clean Water and Sanitation. Two billion people still lack access to safely managed drinking water, 25% of the world’s population lives in countries facing extremely high water stress, and only 54% of the world’s population uses safely managed water.”