Sustainable financing

ACCIONA’s financing strategy aims to provide the most efficient solutions in economic terms, as well as 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 in which the use of funds is committed to specific areas or objectives within the Sustainable Agenda
  • the other where determination of the financing cost is linked to ACCIONA's sustainable performance improvements.

Financing the sustainable agenda

This form of financing, whether sourced from capital or banking markets, involves committing to investing the funds raised in projects that contribute directly to 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 and circular economy and adaptation to climate change.

 

ACCIONA puts forward business opportunities that naturally generate interest in the investment market. This growing interest saw the company, in 2019, develop a new green financing framework - reviewed by Sustainalytics - expanding its portfolio of eligible green projects so the company conributes even more to a low carbon economy.

 

Such financing transactions are performed withing a framework consistent with the European Union Green Bond Standard (EU-GBS), which was introduced by the EU Technical Expert Group (TEG) on Sustainable Finance in June 2019. The EU-GBS is a voluntary standard proposed to issuers who wish to align with best market practices. 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. In October 2021, Sustainalytics reviewed ACCIONA’s renewable energy activities under  the Framework for their alignment with the EU Taxonomy Climate Delegated Act, published in June 2021. This assessment speaks only to assets and projects of ACCIONA Energía, and should be read in conjunction with the company’s Green Financing Framework, as well as Sustainalytics’ Second-Party Opinion.

 

 

    Green transactionsAmount (millions)Maturity

    Euro Medium Term Note (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

    XS2458558934  due March 2025

    EUR 100

    March-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

    XS2484362558  due January 2028

    EUR 35

    January-28

    XS2300169419 due February 2028

    EUR 49

    February-28

    XS2468952879  due April 2030     

    EUR 20

    April-30

    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 121,5

    October-35

    XS2267085616 due December 2039

    EUR 120

    December-39

    Other transactions

    Schuldschein 2019

    EUR 155

    Various

    2021 Loan due June 2028

    EUR 76.5

    June-28

    NSV due October 2034

    EUR 50 

    October-34

    NSV due March 2035

    EUR 30

    March-35

    Private Schuldschein

    EUR 40

    Various

    FINANCING FOCUSED ON IMPROVING ESG PERFORMANCE

    This type of financing incorporates, in its economic terms and conditions, objectives for ACCIONA to improve its sustainable performance in the environmental, social, and governance (ESG) areas. Fulfilment 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 that will generate positive local impacts.

     

     

      ESG TransactionsAmount (millions)Maturity

      Syndicated Loan EUR 800 M ACCIONA

      EUR 800

      May-26

      Syndicated ESG Loan EUR 2,500 M ACCIONA Energía

      EUR 2,500

      May-26

      Financing NIRs

      AUD 353.1

      June-25

      Bilateral loan 2022

      EUR 200

      May-25

      Schuldschein 2022

      EUR 325

      Various deadlines

      Sustainability Finance Report

      In 2021, ACCIONA has undertaken the Sustainability Finance Report, to improve investors’ understanding of the impact of its financing activities. With this report, ACCIONA fulfills its commitment, stated in its Green Finance Framework and Sustainability-Linked Financing Framework to report on the allocation of net proceeds, associated impacts, and compliance with established SPTs, annually.

       

       

        European taxonomy of environmentally sustainable economic activities

        The active involvement of financial markets in financing the sustainable economy is indispensable for the European Union’s plan to move towards a low-carbon economy.

        The EU taxonomy Regulation (EU Regulation 2020/852) which came into force on 12 July 2020, helps to create the world’s first “green list”, a classification system for sustainable economic activities, which will develop a common language for investors and companies when it comes to financing projects or goods and services with a substantial positive impact on the climate and the environment.

        The proportion of eligible economic activities according to the taxonomy in 2021 was:

        • Business Turnover: 71.83% eligible.
        • OpEx: 83.02% eligible.
        • CAPEX: 87.62% eligible.

        Although reporting the alignment of the activities with the taxonomy on the eligible figure is not obligatory until 2022, just as what happened in the previous two years, the company has carried out and submitted to verification this analysis in 2021, with the following results:

        • Business Turnover: 54.98% of alignment with taxonomy.
        • OpEx: 71.05% taxonomy aligned.
        • CAPEX: 93.15% taxonomy aligned.

         

        ACCIONA ACTIVITY MEETING EU CLIMATE CHANGE MITIGATION REQUIREMENTS

        85 %

        Capex

        84 %

        EBITDA

        47 %

        REVENUES

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