With an original term of five years, the financing can be extended by a year at the election of the banks after the first and second years. The proceeds will be used for the early repayment of bank debt arranged under less favourable terms and to meet the group’s funding requirements in 2011.
In this way, IBERDROLA reiterates its commitment to financial strength, extending the average debt maturity to 6.4 years and bolstering its cash position, which stood at over €10.7bn at the end of the first quarter of 2011 following completion of the acquisition of Elektro.
The company’s debt has drawn demand in the financial community of over €4.1bn, underscoring the confidence in the company and support of its proposals to the market.
The deal was executed through a bank syndicate, with Santander, BBVA, HSBC and BNP Paribas acting as coordinators. In line with its policy of diversifying funding sources, IBERDROLA has obtained highly competitive terms thanks to this support, with spreads over Euribor of 105bp for the loan and 0.7% for the facility.
This communication does not constitute an offer of purchase, sale or exchange or a request for an offer of purchase, sale or exchange of values. The shares of Iberdrola S.A. cannot be offered or sold in the United States, except if this is carried out through a declaration of effective notification of what is laid out in the Securities Act or under the protection of a valid exemption of the need for notification.