More than 2,100 million euros in just one week. Three of the large Spanish energy groups have launched into the markets in recent days. Naturgy, Iberdrola Y Red Eléctrica They have stepped up taking advantage of the appetite for Spanish debt issues and thus challenging the environment of uncertainty caused by the coronavirus crisis.
The most ambitious, at least for now, is Naturgy. This Monday, he confirmed a issuance of five-year bonds, for an amount of 1,000 million euros. Regarding the conditions, an annual coupon of 1.25%.
He has done it through the program Euro Medium Term Notes (EMTN), listed on the Luxembourg Stock Exchange. This program is channeled through two issuing vehicles (Naturgy Capital Markets and Naturgy Finance). And it has a route, because its current limit is 12,000 million euros, of which 8,700 have been issued. In fact, the company assumes that it will continue "exploring opportunities to continue optimizing its balance sheet structure and reinforcing its excellent liquidity profile."
The company chaired by Francisco Reynés it justifies the issue for the purpose of reinforcing its liquidity position, which currently stands at 9,000 million, between cash and undrawn lines of credit.
It is a position very similar to that of Iberdrola. The Basque electricity company placed last week, on the eve of its annual meeting, a green bond issue for an amount of 750 million euros and maturity in 2025. In its case, the placement was made among more than 220 investors, mainly from Europe (United Kingdom, included).
In this case, the move was not intended to strengthen liquidity, but to refinance previous debt. Specifically, to refinance investments in renewables, mostly wind farms, in three of the company's main markets in Bilbao: Spain, Mexico and the United Kingdom.
The third Ibex energy company, in terms of amount, to launch on the markets in recent days is Red Eléctrica. In the case of the company chaired by Beatriz Corredor (who is waiting to be confirmed in his position at the shareholders' meeting), 400 million euros, issued again in Luxembourg. Also, at five years and with an annual coupon of 0.875%.
So far, three of the large Spanish energy companies have opted for new debt issues. And the market expects more from rivals like Repsol Y Endesa. The latter leads to its next meeting (scheduled for May 5), the renewal of the go-ahead for the council to issue bonds and other types of financial instruments.
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