Red Eléctrica de España has transformed its €800 million syndicated loan, signed in 2014, into sustainable financing (‘green financing’) by adding environmental, social and good governance criteria to the applicable interest rate (ESG - Environmental, Social and Governance).
This transaction is the first sustainable syndicated loan in the electricity sector, in which its terms and conditions are linked not only to the company’s credit profile, but also to the evolution of ESG parameters pursuant to the rating by the sustainability evaluation agency Vigeo Eiris.
Eight financial institutions have participated in the loan: BBVA, Banco Santander, Barclays Bank, BNP Paribas Fortis, CaixaBank, Citibank Europe, ING Bank and The Bank of Tokyo-Mitsubishi, with BBVA being the sustainability agent bank.
The ESG criteria is a set of rules of action considered by investors when assessing a company's commitment to sustainability and are evaluated by specialised independent agencies.
This initiative showcases Red Eléctrica's strategic commitment to sustainability, through responsible and transparent economic-financial management. The goal of this commitment is to contribute to economic, social and environmental development, as well as to promote progress and social well-being in those areas where the Company’s facilities are located.
In this regard, in 2017 Red Eléctrica has been recognised by the Dow Jones Sustainability Index (DJSI) as the world leader in sustainability in the Electric Utilities sector, also reaching the leading position in the Utilities supersector, which encompasses the electricity, gas and water sectors.
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