The Red Eléctrica Group, through its subsidiary Red Eléctrica Financiaciones, has today carried out a 600-million-euro green bond issuance with a 12-year maturity and a coupon rate of 0.625%. This is a transaction with which Red Eléctrica once again demonstrates its commitment to green financing and through which it seeks to promote sustainable projects, specifically those that accelerate the ecological transition in Spain. The bond issue has received subscription requests from international and national investors amounting to nearly 2 billion euros.

"The success of this financial operation shows the important role that the financial sector plays in this transition towards a greener and fairer model of society and also demonstrates the market's support for the basic pillars of the 2021-2025 Strategic Plan of the Red Eléctrica Group: ecological transition and sustainability", says Emilio Cerezo, the Group's Corporate Chief Financial Officer.

The yield spread of the operation -38 basis points- is the lowest recorded in the Spanish market in the last decade for debt instruments with a maturity of more than 10 years and is also below that of offered by the Spanish Treasury with the same maturity.

Bankinter, BBVA, Barclays, BNP Paribas, CaixaBank, Citi, ING, Mizuho, MUFG and Santander have taken part in this operation and it has become the narrowest spread for a Spanish corporation bond issue with a maturity of over 10 years. This contributes to confirming Red Eléctrica's leadership among the most attractive fixed income issuers in Europe.

Commitment to green financing

Red Eléctrica, as a facilitator of the energy transition in Spain, is one of the companies leading this commitment to green finance. In fact, in December 2017, it became the first company in the utilities sector to transform its 800 million euro syndicated loan into sustainable financing by adding environmental, social and governance (ESG) criteria to the interest rate.

Since then, the Company has continued its commitment to socially responsible investment and in October 2019 presented its Green Financing Framework, to issue financial instruments that allow it to promote projects that accelerate the energy transition in Spain. Just three months later, in January 2020, Red Eléctrica made its inaugural green bond issue for an amount of 700 million euros to finance projects eligible under this Green Framework. The bond issuance was very well received by the market.