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ACCIONA Energía successfully completed the placement of a €500 million ten-year green bond issuance. The transaction closed yesterday at a spread of 98bp over mid-swap, with a 1.387% yield for investors. The cost for the company will be lower thanks to the pre-hedging operations carried out previously.
With a spread under 100 basis points and in a volatile market environment, the company has closed a very competitive long-term funding, with a high-quality investor base and a demand four times higher than the supply.
Nearly 80% of the bonds have been allocated to investors with a focus on sustainability, validating ACCIONA Energía’s attractiveness as a 100% renewable independent electric utility and its sustainability credentials. Geographically, 45% of the bonds were placed with investors in Germany and Austria.
The bonds will be rated BBB- by Fitch and BBB (high) by DBRS – both at investment grade – and will be allowed to trade on Euronext Dublin, under the Euro Medium Term Note (EMTN) program established by ACCIONA Energía in July for a maximum amount of €3 billion. The transaction is structured under an advanced green financing framework that is fully aligned with the taxonomy of sustainable activities and the strict requirements of the European Union’s forthcoming green bond framework.
With the success of this second bond placement, ACCIONA Energía is making progress on one of the main goals of its IPO: to ensure an optimal cost of financing in order to maximize the value generated by its growth plan.
ACCIONA Energía plans to double its size in terms of total installed renewable energy capacity, from 10.7GW in 2020 to 20GW in 2025, with a related investment of €7.8 billion.
ACCIONA Energía received an investment-grade credit rating from Fitch and DBRS at the end of August. In June, the company received the best environmental, social and corporate governance (ESG) rating in the global energy sector in a cross-sectoral assessment by S&P Global Ratings.
The underwriters for the bond issuance were Banco Sabadell, BBVA, Bestinver Securities, BofA Securities, CaixaBank, Credit Agricole CIB, HSBC (B&D), ING, Mizuho, and Santander.