Redeia, a global operator of essential infrastructure, today issued 500 million in green bonds with a six-year term and a yield of 3.018%, according to a statement sent to the National Securities Market Commission (CNMV). This new green bond issue, the company's sixth, comes amid the acceleration of its investments, with a focus on strengthening and developing the transmission network through its flagship company, Red Eléctrica, whose investment pace has increased significantly in recent years.
In 2024, investments reached 1,104.9 million, representing a 34% increase over the previous year, and this figure is expected to exceed 1.4 billion in 2025. In this sense, the financing obtained will support these strategic investments in the country's electrical infrastructure, with which Red Eléctrica is enabling industrialization throughout the country and consolidating the ecological transition process, making Spain a leader in the integration of renewables. In this context, the company continues to invest in this sustainable financing instrument, following the issuance of green bonds in July 2024.
Demand in this case was 2.5 times higher than supply and reflects the strong interest from investors, reaching around 1.25 billion.
"Our investors continue to support us, understanding the crucial role that Redeia plays and will continue to play in enabling the energy transition in Spain, as demonstrated by the positive reception of this transaction.
We are experiencing a time of great transformation in which the development of electric transport infrastructure is key to the country's progress," emphasized Emilio Cerezo, Corporate Director of Economic and Financial Affairs at Redeia. For this transaction, Redeia has enlisted the participation of BBVA, Caixabank, and Banco Santander as global coordinators; ING as the sustainability structuring bank; and Barclays, Citi, BNP Paribas, Mediobanca, Bankinter, and Société Générale as underwriters. Pioneers and benchmarks in sustainable financing In 2017, the company became the first company in the utility sector to transform its 800 million syndicated loan 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, which it updated this year.
Furthermore, in 2021, the company confirmed the alignment of this green framework with the European Union Taxonomy, according to which 87.4% of Redeia's activity is environmentally sustainable by December 2024. To finance projects eligible under this Green Framework, the company has carried out successive issues of green bonds.
In January 2020, Redeia carried out its first issue for 700 million, which was very well received by the market.
The corporation continued its strategy in 2021, issuing a new green bond for 600 million through which it achieved its lowest credit spread of the last decade.
In 2023, Redeia went a step further, opting for the first time for 500 million in perpetual hybrid bonds with a coupon of 4.625%.
In 2024, the group reinforced its commitment to this instrument with two green issues, in January and July, which attracted strong investor interest. Looking ahead, Redeia has set the goal of securing 100% of its financing based on ESG criteria by 2030.