AUDAX RENOVABLES APPROVES REGULATORY FRAMEWORK FOR ENVIRONMENTAL PROJECT FINANCING THROUGH POSSIBLE ISSUE OF GREEN BONDS
The company approves its reference regulatory framework for green financing applicable to its future bond issues, obtaining the highest level of assurance from an independent expert.
The board of directors of Audax Renovables (ADX.MC), the energy group whose activities involve retail and production of 100% renewable electricity, has approved the Reference Regulatory Framework for Green Financing. A bid for sustainable growth and development in regards to the environment, covering sustainability policies and practices of the Audax Renovables Group.
Audax Renovables has carried out an analysis of the capacity to integrate Environmental, Social and Governance (ESG) factors within its strategy, through the use of the services of the independent expert Vigeo Eiris. The analysis was conducted with the aim of optimising the Group’s cost of debt, diversifying its finance sources and aligning its financial strategy with its sustainability mission and values. According to the opinion of the expert Vigeo Eiris, the Reference Regulatory Framework for Green Financing of Audax Renovables meets the requirements established by the International Capital Market Association (ICMA) and therefore has obtained the highest level of assurance.
The Regulatory Framework has been inspired by the principles of the Green Bonds established by ICMA, with the following key ideas:
- The funds will be used for green projects offering clear benefits for sustainability. Specifically, they should be directed towards financing those projects which contribute to the achievement of the Sustainable Development Goals promoted by the United Nations
- The issuer of the green bond shall provide the investors with clear and transparent information about environmental sustainability goals and allow for external evaluation, selection and review of the projects.
- The management of funds shall be controlled by the issuer, who must permit a complementary review by an external independent reviewer.
- The green bond issuer shall update periodically the information on the use of funds and the benefits of sustainability obtained.
By aligning with the principles of the Green Bonds established by ICMA, the Audax Renovables Group sets itself the goal to assign the funds obtained through future issue of green bonds to be invested in those projects which would meet the criteria concerning natural environment and sustainable development. These projects will be validated by Audax Renovables as well as by an independent rating organisation.
The projects will pertain to the realm of renewable energy and will help create positive impact on the community and on the markets where the Group operates. It will be a direct contribution towards achieving Sustainable Development Goal 7 (SDG 7 – affordable and clean energy) and Sustainable development Goal 13 (SDG 13 – climate action) promoted by the United Nations in its 2030 Agenda.
This commitment made by the Group will allow for its future bond issues to be categorised as “green” – a requirement already expressed by many of the international investors. The alignment with the principles of Green Bonds established by ICMA is usually considered as a benchmark for many international investors who distinguish between the issuers who comply with environmental, social and governance (ESG) principles and requirements, and those who do not.
Moreover, in case of refinancing, the investors will be informed of its estimated part before each issue. Under no circumstances the retroactive period of refinancing may be extended beyond 36 months before the issue date of each green financing or green bond.
In its endeavour to obtain this category, Audax Renovables has been assisted by Vigeo Eiris as independent expert, one of the main international independent providers of valuation, research and opinion services on environmental, social and governance (ESG) issues for investors and organisations, both public and private. Vigeo Eiris expressed its assurance regarding the contribution to sustainable development of the future financing instruments of Audax Renovables and issued a Second Party Opinion (SPO) awarding the highest level of assurance. Vigeo Eiris expresses its opinion on the issuer and on the issuer’s commitments regarding natural environment and sustainable development, as well as on its ordinary operations and management of selected projects.
About Audax Renovables
Audax Renovables is the result of a merger between Audax Renovables itself and its parent company, Audax Energía, which gave rise to an energy group whose business is centred on supplying electricity (100 % renewable) and gas as well as on the production of 100% renewable energy.
Currently, it is listed on the Spanish Continuous Market under the ticker ADX.MC, and has been incorporated to the IBEX SMALL CAP® index since 23 March 2020.
As an energy Group with leading position in the SME segment in Spain, Audax Renovables guarantees efficient supply of energy retailed through a process of vertical integration with the renewable energy production branch, with a robust financial position and ready to lead the energy transition on the European market.
The Group operates through two different business activities: retail and production. Its division of electricity and gas retail is present in Spain, Portugal, Italy, Germany, Poland and the Netherlands, with over 365 thousand clients.
On the other hand, the generation division manages a total portfolio of operating wind farms of 91 MW in Spain, France and Poland. Additionally, it has a portfolio of photovoltaic projects under development of 320 MW in Spain, as well as a wind project under construction of 66 MW in Panama.
More information about Audax Renovables is available here: www.audaxrenovables.com