Behind each sustainable issue there is an entire process of analysis, meetings with potential investors, a prior financing framework environment by the company and, in most cases, an underlying in the form of a project linked to any of the three sections that come together in the ESG. For years, this type of financing has represented a double opportunity for the company that carries it out. On the one hand, find extra demand of that type of investor who focuses his fishing on green bonds and, on the other, thanks precisely to this greater demand, in many cases manage to reduce their financing costs in several basic points compared to what would have been achieved with a traditional financial vehicle.
In this sense, for Emilio Cerezo, Corporate Economic-Financial Director of Redeia“the analyzes and studies that have been carried out in recent years do report a significant difference between financing oneself in compliance with ESG regulations and not doing so. In my opinion, it is an aspect of supply and demand and we see how in the coming years the “Supply is going to increase, also on the part of Redeia, and what we need is for demand to match and, for that, the standardization of reporting frameworks is required.” “If you gain in this and in visibility and transparency, the demand that may have been detracted will appear,” he adds.
The Director of Finance and Treasury of SacyrPablo Otero also recognizes “an improvement in financial conditions since for many financiers it is a necessary condition that it be sustainable. The greater the depth of the market, the better conditions when it comes to financing.” “In addition, we assume a series of KPIs that as we comply there is a small adjustment in the final financial cost,” explains Otero.
“There is greater acceptance by specialist funds, which have greater demand for these issues, although there may or may not be a cost advantage,” says David Maroto, Director of Financing at Telephone. “Sometimes it is difficult to measure accurately as we do not have a comparable of the same size and duration, although we do observe that the investor is more stable and tends to stay to maturity to a greater extent than in other bonds, which makes the market secondary there is less volatility”. “We believe it helps the execution but not so much the price,” he adds.
From Iberdrolaone of the companies that has been present in this market for the longest time, its Director of Financing and Treasury, Jesús Martínez, places precisely this underlying value. “We have been financing decarbonization and development of renewable energy projects for many years and we have done so in a sustainable way also from the point of view of financial prudence, without drowning in debt, which is also important. “It is not so much a matter of how many basis points We cut back, but good financial conditions are needed in general for the company to carry out its projects,” he adds. “Investors want our bonuses for our strategy,” he concludes.
Ricardo Barrenechea, Managing Director of Corporate and Investment Banking, Energy unit of CaixaBankprovides the financier’s point of view, “accompanying the client throughout the process with the objective of decarbonizing the economy and within our strategic plan, which we closed this year, was the challenge of mobilizing 4,000 million, something that we have already achieved and that we will increase in view of the next plan that we will present. “We do see it as important that there is greater standardization in our portfolios, just as the market is asking for,” he adds. “Now sustainable financing is being prioritized and that translates to cost and profitability,” he concludes.
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