The Elecnor Group has restructured its long-term sources of financing, making them green through its direct commitment to achieving objectives linked to the Sustainable Development Agenda. Thereby, the company has recently signed a novation agreement regarding the Syndicated Loan which it entered into in 2014 and which had already been subject to novations in 2015, 2016, 2017, 2018 and 2019, permitting successive extensions of the deadline and improvement of the terms.

The last novation extends the due date by rather more than two years, until September 2026. Furthermore, it includes voluntary early repayment of EUR 150 million of the Loan Tranche and an increase of EUR 100 million of the Credit Tranche. The financing limit has been brought to EUR 350 million, divided between a Loan Tranche of 50 million and a Credit Tranche of 300 million.

The financing outlined above meets the requirements established by the “Sustainability Linked Loan Principles”, and thereby has been classified as sustainable.

The novation has been signed by Santander (Agent Bank), Caixabank, Abanca, BBVA, Kutxabank, Sabadell, Barclays, Société Générale, Unicaja, Crédit Agricole, Banco Cooperativo and Bankoa.

Green, sustainable, private placements

Furthermore, Elecnor has signed three long-term private placements for EUR 100 million.

• 50 million for 10 years, in sustainable loan format, coordinated by Banca March.
• 20 million over a period of 10 years, which additionally complies with the “Green Loan Principles”, by assigning funds to projects classified as green, signed by the ICO (Spanish Official Credit Institute) and offered by B. Sabadell.
• 30 million over a period of 14 years, in the form of sustainable bonds issued on the Spanish Alternative Fixed-Income Market (MARF) with a rating from Axesor for the Elecnor Group (Investment Grade; BBB-) and also offered by B. Sabadell.

Taking advantage of the favorable market situation and the confidence of both entities and investors in the Elecnor Group, it has managed to extend the maturities of long-term financing to average maturities of close to 10 years, while maintaining its low average costs.

The legal consultancy for all these operations has been provided by Cuatrecasas.

Furthermore, G-Advisory (G.Garrigues) is the Sustainability Consultant issuing the Reports on these financing operations.

The Elecnor Group and sustainability

The Elecnor Group's commitment to sustainability is inherent to the entire development of its activities and business strategy. The Group is a key player in the development and progress of society. Its infrastructure, energy, water and environmental projects provide solutions to current and future challenges, such as climate change, the energy gap and the reduction of inequalities, among others.

With this debt restructuring operation, and the conversion of its long-term financing (which becomes sustainable and/or green), the Elecnor Group further reinforces its firm commitment to the highest standards of responsibility in sustainability. Thus, the Group's activity is strongly focused on actively promoting environmental protection through renewable energies and the reduction of its carbon footprint.

The new lines of financing will contribute to the purpose of promoting SDG 13 "Climate Action" of the United Nations Global Compact, encouraging the development of sustainable projects that respect the environment in which they are located.

Elecnor in Brazil

Elecnor ended the first semester of 2021 with a consolidated net profit of EUR 37.6 million, which means an increase of 11.3% in relation to the EUR 33.8 million of the same period in the previous year. In turn, the Elecnor Group’s sales stood at EUR 1,333 million on 30 June 2021, which means an improvement of 31.5% in relation to the same period in 2020. Both the domestic market (accounting for 49% of the total) and the international market (51%) have recorded positive growth of 24.3% and 39.2% respectively.

The Group’s positive evolution can basically be explained by the significant increase in Elecnor’s turnover, mainly due to activities related to Services and to the fact that the Group operates in European countries, such as Spain, the United Kingdom and Italy, and in the United States of America, as well as to major projects starting in Australia, Chile and Brazil. The good performance of the Concessions Business also stands out, complementing and reinforcing the Services and Projects Business.

In a breakdown by area of business, Services and Projects, (previously Infrastructures) boosted its revenue both in Spain and internationally, which has enabled it to increase its net profit by 19.4% reaching the amount of EUR 34.8 million. In the domestic market, the pattern of growth in activity has continued in this period due to the services provided in the energy, telecommunications, water, gas and transport sectors, fields, where an essential service is provided to all the utilities. Furthermore, during the first semester, construction work on wind and solar power farms has also made a contribution. In the international market, this positive tendency is mainly due to the construction of electricity transmission lines in Brazil and Chile, as well as to the US subsidiaries and the start of the major projects in Australia to be carried out this year. 

The Concessions Business, for its part, has increased its consolidated net profit by 33.3% to EUR 17.8 million, in relation to the previous period. The results in this segment have absorbed the impact of devaluations in the currencies in which the Group manages its assets, (particularly in the cases of Brazil and Chile). This business includes the operation of wind, solar and solar thermal power plants and electricity transmission lines. The Group already operates 6,877 km of electricity transmission lines in Chile and Brazil and participates in 1,814 MW of renewable energy (93% of which is in use and 7% under construction) in Spain, Brazil, Canada, Australia and Colombia, and will continue with its intense promotional activity to ensure its growth.

In the domestic wind market became operational the Cofrentes wind farm in April last year, and internationally the north of Brazil farms (at the end of last year and the beginning of this one). 

The business of power transmission continues to grow with greater participation in power lines in Brazil and Chile, as well as the signing of a contract by Celeo Concesiones to acquire 20% of the shares in the Colbún Transmisión, S.A. power transmission line business. (APG Asset Management N.V. will acquire the remaining 80%). Through this acquisition, APG and Celeo will together become the second largest player on the  transmission regulated market in Chile.

Production portfolio on the rise between periods

Regarding the portfolio of signed contracts to be executed and whose execution is planned to happen in the next twelve months, as of 30 June 2021 the figure amounts to EUR 2,612 million (compared to EUR 2,273 million at the end of last year and EUR 2,509 million at the close of the previous quarter). The international market accounts for 75% of this figure and 25% comes from the domestic market. 

With a view to the rest of 2021, Rafael Martín de Bustamante, Chief Executive Officer of Elecnor, stated, “thanks to our solid contract portfolio and its diversification, both geographically and in its activities, we expect to exceed the figures for sales and results achieved the previous year.” 

“Our businesses continue to generate a solid operating cash flow, reinforcing the Group’s financial situation and in addition to this, all accounts receivable are being specially monitored. Furthermore, circumstances abroad are improving, as despite the fact that there is a great degree of uncertainty due to the virus, it is expected that the global economy will grow towards the end of the year thanks to the vaccines and support from public policies,” the CEO added.

Commitment to sustainability, people and the environment

The Elecnor Group generates change and well-being. For this reason, it is conscious of the importance of its activities on people and on the environment of the areas in which it operates. Its objective is to maximise the positive impacts it has on society and the environment and minimise the negative ones, by means of responsible, ethical and transparent behaviour. This commitment is inherent in the entire progression of the Group’s activities and its business strategy, as well as in its relationship with stakeholders.

In line with ESG criteria (environmental, social and governance), the Elecnor Group contributes to global sustainability as follows:

Focused on people

• Occupational risk prevention in the workplace

• Promotion of equality and diversity

• Incorporation of people at risk of social exclusion

• An increase of 20% of women on the staff in 2020.

• Women make up 30% of the staff in Structure

Protecting the environment

• Continuation of the 2030 Climate Change Strategy

• Incorporation of the environmental aspect into the decision-making processes regarding investments and the planning and execution of activities.

• Promotion of renewable energy

• Development of activities in keeping with internal Environmental Management and Energy Management Systems, certified in accordance with the ISO 14001 and ISO 50001 standards respectively.

• Reduction of GHG emissions by 24% with reference to 2014.

• Top score in the international CDP classification, demonstrating Elecnor’s leadership in the fight against climate change

Committed to society

• Signatory Partner to the UN Global Compact

• Collaborator in Sustainable Development Goals (SDG)

• Social action led by the Elecnor Foundation

• Dialogue with local communities

• Operational excellence

Good Governance

• The highest ethical standards

• Zero tolerance of bad practice

• Information Transparency

• UNE-ISO 37001 certification of Anti-bribery Management System

• UNE-ISO 19601 Certification of Criminal Compliance Management Systems