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Corporate
03 APR 2019
  • The interest rate will be adjusted according to the company’s performance on environmental, social and governance (ESG) targets

ACCIONA has arranged its first ESG Syndicated Loan, with a principal of €675 million. The interest rate on the loan will be adjusted according to the company's performance in three sustainability parameters: environmental, social and corporate governance.

The ESG loan works as follows: the initially-arranged spread will be reduced if ACCIONA exceeds its current sustainability rating. If its rating falls, the spread on the loan increases.

The company's ESG performance will be independently reviewed by RobecoSAM, a specialist in sustainable investing that provides sustainability indices and corporate sustainability assessments.

Banco Santander and BBVA acted as sustainability co-agents. Both banks, together with Intesa, Crédit Agricole, Unicredit and NatWest, acted as bookrunners. Another 17 financial institutions participated in the loan.

The facility is extended for an initial period of five years, with the possibility of two one-year extensions. It will be used to cover maturities, mainly bonds, due in 2019 and 2020.

The credit facility was initially set for €500 million. Despite the strong demand, ACCIONA decided to cap the loan at €675 million.

This deal improves ACCIONA's funding cost and maturity profile while further strengthening its commitment to sustainability.