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Iberdrola raises $7.2bn through debt and green bonds, YTD 2022

image credit: Enerdatics
Mohit Kaul's picture
Founder Enerdatics

Building Enerdatics. Leadership experience in a high growth SaaS company and secured a successful exit. A natural leader who cares about creating value for all stakeholders. Extensive experience...

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  • Nov 16, 2022

The company has raised the capital through loans from a range of lenders, including multilateral financial institutions such as the European Investment Bank (EIB) and export credit agencies such as Instituto de Crédito Oficial, European Export Credit Agency, and Denmark-based EKF. BNP Paribas, CaixaBank, and Banco Santander are some of the other lenders that have supported Iberdrola this year. As of November 7th, 2022, Iberdrola holds more than €44.6bn in outstanding debt, of which over €22.7bn corresponds to green financing and ~€21bn originates from credit lines, loans, or commercial paper programs. 

The company estimates its net debt to increase to €57.5bn at the end of 2025, driven primarily by the closing of the $8bn PNM acquisition and planned Capex for 2023-2025e, which is expected to reach €47bn. Of the total investments, €17bn is allocated to renewables, with offshore wind developments accounting for 46% of the pot. Iberdrola aims to raise its total installed renewables capacity from 40 GW at the end of 2022 to 52 GW at the of 2025. During the second half of this decade, the company envisages investments of €65-75bn to raise its renewables capacity to more than 80 GW, accounting for 80% of total power generation capacity.

The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.

Hari Krishnan V S's picture
Hari Krishnan V S on Nov 17, 2022

The company’s adjusted net debt to EBITDA ratio for the first nine months of 2022 stood at 4.64 compared to 3.3 in Mar 2022. Though the ratio has increased, the company has also seen stable growth with an EBITDA growth of ~17% for the first 9 months of 2022 v/s 2021.

Kshitij NR's picture
Kshitij NR on Nov 17, 2022

Iberdrola's most recent financing is a €500 million syndicated green loan with CaixaBank and BNP Paribas focussed on developing  hashtag#wind  and  hashtag#solar  photovoltaic projects, as well as  hashtag#energystorage  and transmission grid projects in the  hashtag#unitedkingdom ,  hashtag#Ireland ,  hashtag#Portugal  and  hashtag#Poland . Total renewable capacity under this placement is estimated to reach 650 MW.

Sanskruti  Rajore's picture
Sanskruti Rajore on Nov 17, 2022

The Green, social and sustainability bond market has increased to over €2.2 trillion over the previous 15 years, with more than two thirds of the growth occurring in the last five years, driven by investor demand for transparent and sustainable investments. For instance, the use of these bonds by the European Investment Bank increased from 7% of its overall funding to 30% between 2018 and 2022.

Mohit Kaul's picture
Thank Mohit for the Post!
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