Redeia, a global operator of essential infrastructure, issued today €500 million in green bonds with an 8-year term and a 3.458% rate, according to the statement sent to the National Securities Market Commission (CNMV).

The funding obtained will enable Redeia to continue successfully advancing its strategic plan. This boost will impact the planned investments to achieve the ecological transition in Spain, speeding up the development of the transmission grid. In this regard, Red Eléctrica, a subsidiary and Spanish TSO, is making steady progress in executing the current electricity planning, a roadmap for the deployment of these grids that is binding for the company.

This is the fifth time the company has opted for this sustainable financing instrument and follows the green bond issuance carried out on 3 January. The demand in this case has tripled the offer, reflecting strong investor interest, amounting to around €1.5 billion. ‘Our leadership in sustainability and Redeia's strong commitment to the energy transition for the decarbonisation of the economy represent highly significant values for our investors. The successful outcome of this operation, in line with previous ones, demonstrates the trust they have in our group and encourages us to continue on this path,’ highlighted Emilio Cerezo, Redeia’s Chief Financial Officer.

This operation received support from multiple national and international investors, including the European Investment Bank and the Official Credit Institute. Barclays and Banco Santander acted as coordinators, with Bankinter, BBVA, BNP Paribas, CaixaBank, Citi, ING, Kutxabank Investment Norbolsa, Mediobanca, Mizuho, and Morgan Stanley serving as underwriters.

Pioneers and leaders in sustainable financing

In 2017, the company became the first in the utilities sector to transform its syndicated loan of €800 million into sustainable financing by adding environmental, social, and governance (ESG) criteria to the interest rate. In October 2019, it presented its Green Framework to align its financing with its sustainability strategy. Subsequently, the company adapted this Green Framework to the European Union Taxonomy, according to which 78.5% of Redeia's activity is environmentally sustainable.

In January 2020, Redeia launched its first green bond issuance of €700 million to finance eligible projects within this Green Framework, receiving a strong market response. The organisation continued its strategy in 2021 with a new green bond issuance of €600 million, achieving the lowest credit margin in the last decade. In 2023, Redeia took a further step by opting for the first time for life-long green hybrid bonds of €500 million with a 4.625% yield. In the 5 January 2024 issuance, the demand for these new bonds exceeded €1.7 billion.

For the future, Redeia has set a goal for having all of its financing arranged under ESG criteria by 2030. With today's operation, the company’s percentage of sustainable financing rises to 66%, surpassing the midterm target of 60% set for 2025.