Second-Party Opinion Download

Sustainalytics is of the opinion that the Red Eléctrica Green Finance Framework is credible and impactful and aligns with the four core components of the ICMA Green Bond Principles 2018 and the LMA Green Loan Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds are aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the integration of renewable energy into the electrical grid as well as the provision of electricity to rail networks will lead to positive environmental impacts and advance the UN Sustainable Development Goals, in particular goals 7 and 11.

PROJECT EVALUATION/SELECTION

Red Eléctrica has defined a two-stage project selection process, with approval from its Sustainability Steering Committee, which includes representatives from Corporate Finance, Sustainability, Energy Networks, System Operation, and Management Control. This Committee will also monitor the green portfolio on an ongoing basis. This is in line with market practice.

MANAGEMENT OF PROCEEDS

Red Eléctrica will manage the proceeds of green transactions in a portfolio approach, aiming to ensure that the green portfolio matches or exceeds the balance of outstanding instruments. Unallocated proceeds will be held in line with the Company’s liquidity policy. This is in line with market practice.

REPORTING

Red Eléctrica intends to report on the allocation of proceeds at the category level on an annual basis, including the total amount allocated to the Eligible Green Projects Portfolio, the amount and/or percentage of new and existing projects, year of investment, and the geographical distribution of the assets. In addition, impact reporting including relevant quantitative indicators, case studies, or reports will be provided where feasible. This is in line with market practice.