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 transactions | Amount (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 113.2 | August-26 |
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 |
XS2267085616 vto. December 2039 | EUR 120 | December-39 |
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" Transactions | Amount (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.
Decoding the EU Taxonomy
Values within the requeriments set by the EU
93 %
Capex
83 %
EBITDA
58 %
REVENUES