Siemens Gamesa has strengthened its long-term funding structure by securing an improvement in the conditions of its main financing facility and incorporating sustainability criteria.
The operation was highly successful, securing commitments from 22 banks and being more than 50% oversubscribed.
Specifically, the company has extended the maturity of its €2.5 billion syndicated facility, arranged in May 2018 with various domestic and international banks. This consists of a €500 million loan and a €2 billion, multi-currency, revolving credit facility, maturing in 2022 and 2024, respectively. The funds will be used to finance recurring activity, which is now covered for the next 5 years.
Moreover, the fact that its credit quality is rated as investment grade by the main rating agencies — Standard & Poor’s, Moody’s and Fitch — has enabled the company to secure more flexible terms and conditions for its financing.
Another novelty in this operation has been the inclusion of environmental, social and corporate governance (ESG) criteria, in line with the company’s new green financing strategy. “Sustainability is a fundamental pillar for Siemens Gamesa’s entire business model, so we endeavour to ensure that all our financial operations are fully aligned with sustainability criteria. This further underpins our company’s commitment to the UN Sustainable Development Goals (SDGs) in relation to ‘Affordable and clean energy’ and ‘Climate action’, while also evidencing our commitment to creating a better future for people and for the planet,” noted David Mesonero, CFO of Siemens Gamesa.