Iberdrola has today signed a new credit line amounting to EUR2.5 billion with 21 banks, linked to sustainability indicators.

The conditions of the subscription have pre-COVID levels, with prices similar to its last such transaction in March 2019 despite the current banking environment.

The facility has a term of five years, extendable for a further two years, and is multi-currency. These conditions demonstrate the confidence in the group's financial strength and strategy. Iberdrola is currently executing a major EUR75 billion investment plan up to 2025, focused on renewables and networks. It is also the first transaction of a Spanish company referenced to risk free rates (RFR) instead of LIBOR, with the indices serving as a model for future financing.

This new credit line is subject to two sustainability indicators, related to environmental and social issues. Based on performance, the margin of the operation can be adjusted step up or step down.

The first indicator is related to the group's emissions reduction, in line with UN Sustainable Development Goals (SDGs) 3 and 17. Iberdrola's CO2 emissions target by 2025 is set at below 70 g/kWh. Emissions in 2020 were 98 g/kWh, a reduction of 11 % on the year before. The second indicator is associated with the increase in the number of women in leadership positions in the company. In this regard, Iberdrola has proposed that 30 % of these positions should be occupied by women by 2025, in line with UN SDG 5, related to gender equality.

Iberdrola and the banks involved in the operation have also introduced, for the first time, a third social factor. Each year, a financial contribution will be made by Iberdrola to a sustainable project, for an amount depending on the degree of utilization of the line. The beneficiary project will be defined in 2022 and the first contribution will be made in 2023. Thus, the financial institutions syndicating this credit facility also demonstrate their sustainable commitment to a project, aligned with SDGs 5, 7 and 13 to which the operation is linked.

BBVA acted as the agent bank and sustainability coordinator, together with Unicredit.

With today's agreement, Iberdrola has moved closer to its goal of having 100 % of its credit lines green or sustainable by 2025, which currently stands at 90 %. The company led the way in sustainable financing. In 2018 Iberdrola closed the largest ever credit facility (EUR5.8 billion) under sustainability criteria.

The facility signed today also meets the Sustainability-Linked Bond Principles of the Loan Market Association and will benefit from the independent opinion of VigeoEiris.

Contact:

Susana Sanjuan

Tel: +34 91 784 32 32

Email: comunicacioncorporativa@iberdrola.es

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