Iberdrola has signed a loan worth 500 million euros with BBVA to finance energy efficiency and renewable energy projects. The so-called green loan offers the company more advantageous conditions (no details have been provided on the cost or maturity).
Interestingly, this is the first operation of its kind on a global level.
Iberdrola’s 2016-2020 strategic plan envisages investments of over 7.5 billion euros in renewables over the period, with the aim of reaching 17.500 MW of capacity by end-2020.
The company’s debt stood at 28.4 billion euros in the first nine months of 2016, with an average cost of 3.46%. The news has no impact on our evaluation and we maintain our overweight stance, says Renta 4 analysts.
This new funding fits in with Iberdrola’s strategy of having a significant part of its debt in the form of green loans. Iberdrola is the only Spanish electricity amongst the 100 most sustainable companies in the world and the top global renewables producer.
In fact in 2016, Iberdrola’s activity in Spain was characterised by strong renewables production (40.8% of the total) due to the big increase in hydraulic production (+25.3%), particulary during the first half of the year. That said, the US has been the main driver.
Iberdrola’s net profit rose 11.7% to 2.705 billion euros in 2016 from a year earlier, thanks to the good performance of its business in the US, which saw a 53% rise, according to the company.
Ebitda stood at 7.807,7 billion euros, up 5.5% from a year ago. Without taking the exchange rate effect into account, the rise was 8.2%.
Iberdrola invested 4.264,3 billion euros over 2016, a 32.3% increase on 2015. Of this total, 90% was earmarked for its regulated business or that with long-term contracts.