Sustainable financing
The group's financing strategy is aimed at providing the most efficient solutions both in terms of economics as well as with respect to creating a positive impact.
Regarding sustainable financing, taking into consideration market conditions and business strategy at any point in time, the company is using two alternative formats: one format in which the use of funds is committed to specific areas or objectives within the sustainable agenda, and the other format where the determination of the financing cost is linked to ACCIONA's sustainable performance improvements.
Financing the sustainable agenda
At present, this format of financing, whether sourced from the capital markets or the banking market, involves the commitment to invest the funds raised in projects that contribute directly to the achievement of objectives linked to the sustainable agenda. These investments are mainly related to the development of renewable energy, access to water and sanitation, infrastructure for sustainable mobility or circular economy, and adaptation to climate change.
The company develops business opportunities capable of generating interest in the investment market. Given this growing interest, ACCIONA has developed in 2019 a new green financing framework - reviewed by Sustainalytics - that expands the portfolio of eligible green projects, compared to the previous framework - also reviewed by Sustainalytics -, based on the contribution of the company to a low carbon economy.
The financing transactions in this format are carried out under a framework, consistent with the with the European Union Green Bond Standard (EU-GBS) produced by the EU Technical Expert Group (TEG) on Sustainable Finance (June 2019). The EU-GBS is a voluntary standard proposed to issuers that wish to align with best practices in the market. It is designed to be globally relevant and accessible to issuers located both inside and outside the EU. It builds on market best practices such as the Green Bond Principles (GBP) published by the International Capital Markets Association (ICMA) and the Green Loan Principles (GLP) administered by the Loan Market Association (LMA).
ACCIONA’s Green Financing Framework has been reviewed by Sustainalytics, which issued a Second-Party Opinion confirming the alignment of the Framework with the Green Bond and Green Loan Principles.
| Green transactions | Amount (million) | Maturity |
|---|---|---|
Loans | ||
Bankia Loan AUD 165M | AUD 165 | December-22 |
ING Loan AUD 100M | AUD 100 | July-24 |
Bankia Loan USD 55 M | USD 55 | December-21 |
Unicredit Loan EUR 50 M | EUR 50 | January-22 |
Sydicate facility (Chile) USD 200 M | USD 150 | October-24 |
EMTN | ||
XS2202837121 due July 2023 | USD 30 | July-23 |
XS2122902468 due February 2024 | EUR 139.8 | February-24 |
XS2343532417 due January 2025 | EUR 116.2 | January-25 |
XS2327979675 due April 2025 | RON 62 | April-25 |
XS2327979758 due April 2026 | PLN 80 | April-26 |
XS2036691868 due August 2026 | EUR 174 | August-26 |
XS2318337149 due March 2027 | EUR 80 | March-27 |
XS2327979832 due April 2027 | PLN 25 | April-27 |
XS2343370412 due May 2027 | JPY 10,000 | May-27 |
XS2300169419 due February 2028 | EUR 19 | February-28 |
XS1684805556 due December 2030 | EUR 118 | December-30 |
XS2309352891 due March 2031 | JPY 10,000 | March-31 |
XS2343361007 due May 2031 | USD 90 | May-31 |
XS1525867104 due November 2031 | EUR 40 | November-31 |
XS2357748016 due June 2034 | EUR 70 | June-34 |
XS2248078136 due October 2035 | EUR 92 | October-35 |
XS2267085616 due December 2039 | EUR 120 | December-39 |
Other transactions | ||
Schuldschein 2016 | EUR 78.5 | Various |
Schuldschein 2019 | EUR 167 | Various |
NSV due October 2034 | EUR 50 | October-34 |
NSV due March 2035 | EUR 30 | March-35 |
Private Schuldschein | EUR 40 | Various |
ACCIONA reports annually on the projects to which the financing instruments for the sustainable agenda received are assigned. In compliance with its green financing framework, the company has requested an independent review of the impact indicators of these projects. The instruments, projects and associated indicators, as well as the independent assurance report, regarding the funds received until December 31 2020, are published in Annex II of the Integrated Report 2020.
Financing with improvement ESG objectives
This format of financing incorporates in its economic conditions objectives of improving ACCIONA's sustainable performance, across environmental, social and governance (ESG) dimensions. The fulfillment of these objectives is periodically evaluated by international rating agencies, or in the case of specific indicators, by independent auditors.
To this end, ACCIONA and ACCIONA ENERGÍA have a Sustainability-Linked Financing Framework, reviewed by DNV GL, which issued a second-party opinion (SPO) confirming its alignment with the Sustainability-Linked Bond Principles published by the International Capital Markets Association (ICMA) and the Sustainability-Linked Loan Principles administered by the Loan Market Association (LMA).
The Sustainability-Linked Financing Frameworks have been structured on the basis of an innovative "double impact" ESG scheme that links the cost of financing to the achievement of corporate sustainability objectives and - for the first time - to commitments to generate positive local impact.
| "ESG" Transactions | Amount (million) | Maturity |
|---|---|---|
Chile Bilateral Loan USD 15 M + CLP 10,000 M | USD 30 | May-22 |
Sindicate Loan EUR 800 M ACCIONA | EUR 800 | May-26 |
Syndicate ESG Loan EUR 2,500 M ACCIONA Energía | EUR 2,500 | May-26 |
Sindicate Loan EUR 1,300 M | EUR 1,300 | May-24 |
Sindicate Loan EUR 2,200 M - Tranche D | EUR 1,440 | July-24 |
THE EUROPEAN COMMISSION TAXONOMY FOR SUSTAINABLE FINANCE
The active involvement of financial markets in financing the sustainable economy is indispensable for the European Union’s plans to move towards a low-carbon economy.
For an activity to be classified as taxonomic, apart from meeting the technical selection criteria, it must also satisfy a minimum of social safeguards and must not contradict any of the other four objectives sought by the regulation: water protection, transition to a circular economy, control of pollution and healthy ecosystems.
For the second year in a row, in 2020, ACCIONA carried out a classification of its activities using the criteria in the most recent version of the European taxonomy (draft Delegated Act at the end of 2020), so that 85% of CAPEX, 84% of EBITDA and 47% of the company’s sales meet the requirements established in relation to the mitigation of climate change.
Decoding the EU Taxonomy
Values within the requeriments set by the EU
84 %
EBITDA
47 %
REVENUES
85 %
Capex