Gulf Construction Online - Acciona seals $327m finance deal for GCC 'green' projects

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Acciona seals $327m finance deal for GCC 'green' projects

17-10-2024

Acciona, a global leader in sustainable infrastructure and renewable energy, has secured new sustainable financing worth €300 million to fund key projects aimed at reducing carbon emissions and fostering sustainable growth in the Gulf Cooperation Council area (GCC).

The sustainable financing is structured as a green loan with local impact, aligned with Acciona’s Sustainable Impact Financing Framework.

The margin of the financing is linked to a local impact initiative which aims to boost sustainable construction by supporting local suppliers to develop and produce lower or zero-carbon building materials, such as cement, steel and concrete.

The funding underscores Acciona’s commitment to promoting environmentally responsible investment practices.

The proceeds will be allocated to projects that contribute to climate change mitigation and environmental conservation and will be aligned to the EU Green Taxonomy, including renewable energy, energy efficiency programs, sustainable mobility, and sustainable water management initiatives.

The transaction further demonstrates Acciona’s leadership in the sustainable finance market. With a well-established history of raising capital for environmentally beneficial projects, Acciona has successfully attracted diverse investors who are focused on aligning their financial interests with sustainable outcomes.

Acciona issued its first green bond in 2016 and closed the first half of its 2024 financial year with 80% of its corporate debt in sustainable financing structures.

José Ángel Tejero, Chief Financial and Sustainability Officer of Acciona: "This new financing underscores Acciona's strength in diversifying its funding sources while reaffirming our commitment to leading the development of low-carbon solutions in the GCC."

"We appreciate the support of the banks involved in this transaction and we are proud to deliver the region’s first Green Loan with Local Impact financing. Our goal is to continue integrating sustainable structures into our corporate debt," he added.

First Abu Dhabi Bank and Standard Chartered acted as Green Loan Coordinators, SFI Markets as Arranger of the financing and Dentons as Legal Counsel.

Caroline Eber-Ittel, CEO France and Head of Banking and Coverage Europe at Standard Chartered, said: "We’re delighted to provide Acciona with this important Green Loan to support the energy transition in Gulf Cooperation Council countries."

"In our first ever transaction of this kind with a Spanish client, it demonstrates our Iberian strategy to grow in the European sustainable finance space," stated Caroline.

"It is also a reflection of Standard Chartered’s expertise to find opportunities and structured solutions that meet our client’s sustainability ambitions, and our commitment to mobilise $300 billion of sustainable finance by 2030," she added.-TradeArabia News Service