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Ticker Iberdrola

IBEX 35 | IBERDROLA
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IBERDROLA IR
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Financial strategy and key data

Debt capital represents an important financing source for the Iberdrola Group. Central to Iberdrola’s financial strategy is its target financial ratios.

Iberdrola seeks to, whenever possible, centralise its financing activities, however there are circumstances when the Group considers it necessary to arrange finance at the subsidiary level. This means that the majority of financing is conducted at the Iberdrola S.A. level or conducted through instruments with the guarantee of Iberdrola S.A.

Iberdrola S.A. places importance on having a diversified investor base and on reducing financing risks. Iberdrola therefore issues in different markets, currencies and with varying maturities. For more information look up Financial Management  2016-2020 [PDF].

The illustrations below show Iberdrola Group’s adjusted net debt at 31 March 2016.

1Q 2016 NET DEBT AND EQUITYNote (1)
€ MM  
NET DEBT 28,274
EQUITY 40,167

 

1Q 2016 LEVERAGENote (1)

1Q 2016 leverage being 41.7% in 1Q 2015 and 41.3% in 1Q 2016.

The illustrations below show Iberdrola Group’s solvency ratios at 31 March 2016.

IBERDROLA Group’s solvency ratios: Net Debt /EBITDA <or= 3.69: 3.81 in Q1 2015 and 3.77 in Q1 2016; FFO / Net debt <or= 21.1%: 20.3% in Q1 2015 and 21.8% in Q1 2016; RCF/Net Debt >or= 17.8%: 17.2% in Q1 2015 and 19.2% in Q1 2016.

Debt as at 31 March 2016 can be broken down by product source, currency and interest rate, as follows:

 

TYPE OF DEBTNote (5)

Graph showing the Type of Debt (including TEI) at Q1 2016: European Market Bonds 33.2%; Banks Loans 13.7%; TEI 0.2%; Project Finance 1.9%; EIB 6.6%; Commercial Paper 6.7%; Other bonds 1.1%; GBP Market Bonds 11.8%; Dollar Market Bonds 24.3%.

CURRENCY STRUCTURENote (6)

Graph showing the Currency estructure (including hedging trough derivatives) at Q1 2016, distributed this way: Others 1.2%; Dollar 27.8%; GBP 22.0%; Euro 49.0%.

INTEREST RATE STRUCTURENote (5)

Graph showing the Interest Rate Estructure at Q1 2016: Capped 0.2%; Fixed 55.5%; Floating 44.3%.

The slide below shows Iberdrola Group’s liquidity position and debt maturity profile at 31 March 2016:

IBERDROLA GROUP’S LIQUIDITY POSITION AT 31 MARCH 2016
CREDIT LINE MATURITIES (€ MM) AVAILABLE 
2017 & ONWARDS 7,198
TOTAL CREDITS LINES 7,618
CASH & SHORT TERM FINANCIAL INVESTMENTS 963
TOTAL ADJUSTED LIQUIDITYNote (7) 8,581

 

IBERDROLA Group’s debt maturity profile at 31 March 2016 is as follows:

DEBT MATURITY PROFILE

Graph showing the Debit Maturity Profile: in 2016 €1.984 million; in 2017 €2.193 million; in 2018 €3.435 million; in 2019 €3.307 million, in 2020 €2.887 million, in 2021 €15.469 million.

Footnotes:

  • Note (1) All debt figures include TEI.
  • Note (2) Pro-forma including UIL contribution.
  • Note (3) FFO: Net Profit + Minority Results + Amort. and Prov.-Equity Income - Net Non-Recurring Results + Fin. Prov. + Goodwill deduction + Dividends from companies accounted via equity method -/+ reversion of extraordinary tax provision. It includes TEI but excludes Rating Agencies Adjustments.
  • Note (4) RFC: FFO-Dividends paid in cash to shareholders - Net interest on hybrid debt issue.
  • Note (5) Gross debt.
  • Note (6) Net debt including TEI and forwards.
  • Note (7) Including Eur 1 Bn Green Bond issued in April and USD 1.5 Bn new line in USA signed in April, replacing the existing USD 1.3 Bn one.
  • © 2016 Iberdrola, S.A. All rights reserved.