ICBC contributes €107.14 million EUR to a €1.5 billion EUR syndicated sustainability-linked loan to Iberdrola for unspecified purposes

Project narrative

On March 27, 2019, financial close was reached on a deal in which a syndicate of 14 banks — including the Industrial and Commercial Bank of China (ICBC) — entered into a €1.500 billion EUR ($1.69009 billion USD) syndicated multi-currency sustainability-linked loan (SLL) agreement with Iberdrola, S.A. — a Spanish multinational electric utility company based in Bilbao that is the world's largest producer of wind power — and Iberdrola Financiación, S.A.U. — a Spain-incorporated wholly-owned financing subsidiary of Iberdrola — for unspecified purposes. This loan carried a maturity period of five years with a two-year extension options, a final maturity date of March 27, 2024, and an interest rate of EURIBOR plus a margin of 235 basis points (bps). As a sustainability-linked facility, this loan featured two sustainability indicators, one with a social aspect to ensure universal access to affordable, reliable and modern energy services and one with an environmental aspect based United Nations' 2030 Agenda for Sustainable Development 7.2 to increase the share of renewable energy of the global energy production. By including those, this was claimed to be the first credit facility aligned with the ‘just transition’ concept, introduced in the Paris Agreement. Each lender, including ICBC, contributed €107.14 million EUR ($120.72 million USD) to the loan syndicate. Record ID#101999 captures ICBC's contribution. In addition to ICBC, the following lenders contributed to the loan syndicate: Bankia S.A., Bankinter S.A., Banco Bilbao Vizcaya Argentaria, S.A. (BBVA), BNP Paribas S.A., CaixaBank S.A., Crédit Agricole Group, Intesa Sanpaolo S.p.A., Kutxabank S.A., Mizuho Bank, MUFG Bank, Ltd., Natixis, Banco Santander S.A., and Sumitomo Mitsui Banking Corporation (SMBC). BBVA served as sole global coordinator. BBVA and BNP Paribas served as bookrunner and sustainable agent. The loan may have been syndicated to include another seven lenders (21 total). Then, in April 2021, a syndicate of 21 banks — including the Agricultural Bank of China (ABC) — entered into a €2.5 billion EUR ($3 billion USD) multi-currency syndicated sustainability-linked revolving credit facility (RCF) agreement with Iberdrola, S.A. for unspecified purposes. This loan carried a maturity period of five years with two one-year extension options and an interest rate based on risk free rates (RFR) plus an unspecified margin. As a sustainability-linked facility, this RCF featured indicators related to the reduction of carbon dioxide emissions below 70 g/kWh by 2025 in line with United Nations Sustainable Development Goals (SDGs) 3 and 17 and gender equality via the increase of women in leadership positions so that by 2025 30% of leadership was held by women, in line with UN SDG 5, by Iberdrola. If the borrower met these goals, there would be an adjustment (decrease) of the margin, which Iberdrola committed to donating part of that adjustment to projects related to the sustainability indicators. Each lender, including ABC, contributed €119 million EUR to the loan syndicate. Each lender, including ABC, contributed €119 million EUR to the loan syndicate. Record ID#102000 captures ABC's contribution. Then, on December 21, 2023, financial close was reached on a deal in which a syndicate of 33 banks — including the Bank of China (BOC) and ICBC — entered into a €5.300 billion EUR ($5.80321 billion USD) syndicated sustainability-linked credit facility with Iberdrola, S.A. for refinancing purposes. This loan carried a maturity period of five years with a two-year extension option and a final maturity date of December 31, 2028. Each lender, including BOC and ICBC, contributed €160.61 million EUR ($175.85 million USD) to the loan syndicate. Record ID#102001 captures BOC's contribution. Record ID#102002 captures ICBC's contribution.