Sustainable finance

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 transactionsAmount (million)Maturity

    Loans

    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

    XS1737529468 due October 2021

    EUR 222.7

    October-21

    XS2036691868 due August 2026

    EUR 91

    August-26

    XS1684805556 due December 2030

    EUR 68

    December-30

    XS1525867104 due November 2031

    EUR 22

    November-31

    XS2122902468 due February 2024

    EUR 60.4

    February-24

    XS2202837121 due July 2023

    USD 30

    July-23

    XS2248078136 due October 2035

    EUR 39.5

    October-35

    Other transactions

    Schuldschein 2016

    EUR 78.5

    Various

    NSV due October 2034

    EUR 50 

    October-34

    Schuldschein 2019

    EUR 167

    Various

    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 2019, are published in Annex II of the Integrated Report 2019.

    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.

     

     

      "ESG" TransactionsAmount (million)Maturity

      Sindicate Loan EUR 2,200 M - Tranche C

      EUR 260 

      July-22

      Chile Bilateral Loan USD 15 M + CLP 10,000 M

      USD 30 

      May-21

      Sindicate Loan EUR 1,300 M

      EUR 1,300 

      May-24

      Sindicate Loan EUR 675 M

      EUR 675 

      February-24

      Sindicate Loan EUR 2,200 M - Tranche D

      EUR 1,440 

      July-24

      THE EUROPEAN COMMISSION TAXONOMY FOR SUSTAINABLE FINANCE

      In 2019 ACCIONA also classified its activities in accordance to the criteria established for the European Union taxonomy of sustainable finance, confirming that 93% of CAPEX, 83% of EBITDA 7 and 58% of the company's sales meet the established requirements. It was also the first company to publish its degree of alignment with the exacting parameters established in the taxonomy.

      The low-carbon taxonomy is a tool devised by the European Commission in order to help investors, companies, issuers and project developers to navigate the transition towards a low-carbon economy in a more efficient way. The taxonomy establishes performance thresholds (known as "technical screening criteria") for economic activities that:

      • Substantially contribute to one of the six environmental objectives
      • Do no significant harm (DNSH) to other environmental objectives;
      • Comply with minimum safeguards (for example, the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights).

      The EU taxonomy is one of the most significant developments in sustainable finance and it will have far-reaching implications for investors and issuers working in the EU and beyond.

      Values within the requeriments set by the EU

      93 %

      Capex

      83 %

      EBITDA

      58 %

      REVENUES

      You might be interested