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06/29/2018

AVANGRID Enters into Sustainability-Linked Revolving Credit Facility

AVANGRID Enters into Sustainability-Linked Revolving Credit Facility

ORANGE, CT — Friday, June 29, 2018 — AVANGRID, Inc. (NYSE: AGR), a leading sustainable energy company, today announced that the Company has entered into its first syndicated sustainability-linked credit facility as the next step in its ongoing efforts to financially support projects geared to AVANGRID’s commitment to safeguarding the environment, reducing its carbon footprint and growing as a sustainable company.

This innovative sustainability-linked pricing mechanism allows AVANGRID to adapt liquidity to its $14.4 billion investment plan for the 2017-2022 period, while fulfilling its commitment to a competitive and clean energy future and still delivering strong financial results.

The $2.5 billion revolving credit facility closed today and will extend tenor for five years until 2023, and will have 21 lenders participating. Adjustments to the loan pricing will be based on AVANGRID’s continuing reduction in emissions intensity.

"Our values shape our approach to the environment and our responsibility to our stakeholders, where sustainability and financial results are intrinsically linked," said James P. Torgerson, AVANGRID’s chief executive officer. “Development of clean energy and respect for the environment are pillars of our energy production model and our operations. This new financial tool will allow us to reduce our interest rate by meeting targets on environmental sustainability and renewable energy generation.”

In November 2017, AVANGRID issued its inaugural “green” bonds under AVANGRID’s newly adopted Framework for Green Financing, a set of guidelines and commitments for AVANGRID’s green financing activities that are consistent with the Green Bond Principles published by the International Capital Markets Association. The bond offering was nearly four times oversubscribed and attracted many green-focused investors. The nearly $600 million raised has been used to support investment in three AVANGRID renewable generation projects.

Sustainable finance is also part of AVANGRID’s commitment to the UN Sustainable Development Goals (SDG) for 2030, which AVANGRID has incorporated into its strategy. Specifically, AVANGRID is focused on affordable and clean energy and climate action with clean energy goals that include:

  • A pledge to be carbon neutral by the year 2035;
  • Focus on increasing our renewable installed generation capacity by more than 30% by the year 2020; and
  • A clear objective to reduce emissions intensity by 25% by 2020 vs 2015.

JP Morgan, Bank of America Merrill Lynch, MUFG, Santander and Banco Bilbao Vizcaya Argentaria (BBVA) acted as joint lead arrangers for the facility. BBVA acted as “Sustainability Agent.”

About Avangrid

About Avangrid: Avangrid, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $44 billion in assets and operations in 24 U.S. states, Avangrid has two primary lines of business: networks and renewables. Through its networks business, Avangrid owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Through its renewables business, Avangrid owns and operates a portfolio of renewable energy generation facilities across the United States. Avangrid employs approximately 8,000 people and has been recognized by JUST Capital in 2021, 2022, 2023 and 2024 as one of the JUST 100 companies – a ranking of America’s best corporate citizens. In 2024, Avangrid ranked first among utilities and 12 overall. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2024 for the sixth consecutive year by the Ethisphere Institute. Avangrid is a member of the group of companies controlled by Iberdrola, S.A. For more information, visit www.avangrid.com.

 

About Iberdrola: Iberdrola is one of the world's biggest energy companies and a leader in renewables, spearheading the energy transition to a low carbon economy. The group supplies energy to almost 100 million people in dozens of countries. With a focus on renewable energy, smart networks and smart solutions for customers, Iberdrola’s main markets include Europe (Spain, the United Kingdom, Portugal, France, Germany, Italy and Greece), the United States, Brazil, Mexico and Australia. The company is also present in growth markets such as Japan, Taiwan, Ireland, Sweden and Poland, among others.

With a workforce of nearly 40,000 and assets in excess of €141.7 billion, across the world, Iberdrola helps to support 400,000 jobs across its supply chain, with annual procurement of €12.2 billion. A benchmark in the fight against climate change, Iberdrola has invested more than €130 billion over the past two decades to help build a sustainable energy model, based on sound environmental, social and governance (ESG) principles.

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