Deutsche Bank acted as a top-tier lender and Bookrunner on a new, sustainability-linked, multi-currency €2.5 billion revolving credit facility (RCF) for Iberdrola.
The facility is linked to two sustainability indicators: the reduction of emissions by the company and a greater presence of women in leadership positions.
Unique features of the deal
This is the first transaction by a Spanish company to reference risk free rates (RFRs) instead of LIBOR, serving as a model for future financing.
Iberdrola and the supporting banks 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 utilisation of the credit line. The beneficiary project will be defined by 2022 and the first contribution will be made in 2023.
This deal contributes towards Deutsche Bank’s target of delivering at least €200 billion in sustainable finance by 2025.
Iberdrola is a global energy leader, the number one producer of wind power, and one of the world's biggest electricity utilities in terms of market capitalisation.