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 transactions | Amount (millions) | Maturity |
|---|---|---|
Euro Medium Term Note (EMTN) | ||
XS2202837121 due July 2023 | USD 30 | July-23 |
XS2122902468 due February 2024 | EUR 136.6 | February-24 |
XS2343532417 due January 2025 | EUR 159.6 | January-25 |
XS2581457558 due February 2025 | EUR 11.2 | February-25 |
XS2458558934 due March 2025 | EUR 205 | March-25 |
XS2327979675 due April 2025 | RON 62 | April-25 |
EUR 91.4 | October-25 | XS2596338348 due October 2025 |
XS2327979758 due April 2026 | PLN 80 | April-26 |
EUR 174 | August-26 | XS2036691868 due August 2026 |
XS2318337149 due March 2027 | EUR 80 | March-27 |
XS2327979832 due April 2027 | PLN 25 | April-27 |
XS2343370412 due May 2027 | May-27 | JPY 10,000 |
January-28 | XS2484362558 due January 2028 | EUR 35 |
XS2300169419 due February 2028 | EUR 49 | February-28 |
EUR 20 | April-30 | XS2468952879 due April 2030 |
December-30 | EUR 118 | XS1684805556 due December 2030 |
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 |
EUR 120 | December-39 | XS2267085616 due December 2039 |
Other transactions | ||
Various | Schuldschein 2019 | EUR 155 |
EUR 76.5 | June-28 | 2021 Loan due June 2028 |
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 Transactions | Amount (millions) | Maturity |
|---|---|---|
Syndicated Loan EUR 800 M ACCIONA | EUR 800 | Various deadlines |
Syndicated ESG Loan EUR 2,500 M ACCIONA Energía | EUR 1,250 | Various deadlines |
Financing NIRs | AUD 353.1 | June-25 |
Bilateral loans | EUR 595 | Various deadlines |
Schuldschein 2022 | EUR 325 | Various deadlines |
Syndicated Loan AUD 225 MM | AUD 225 | Dec-25 |
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.
Decoding the EU Taxonomy
ACCIONA ACTIVITY MEETING EU CLIMATE CHANGE MITIGATION REQUIREMENTS
85 %
Capex
84 %
EBITDA
47 %
REVENUES