Elecnor launches sustainability-linked promissory note program

Cuatrecasas advised Elecnor on registering a new multicurrency promissory note program with the Spanish Alternative Fixed-Income Market (MARF). This will enable Elecnor to issue promissory notes for up to €400 million to fund working capital needs and new projects, both in Spain and abroad, in the areas of engineering, infrastructure development and construction, renewable energies and new technologies.

This is Elecnor’s first program linked to sustainability, including targets for reducing greenhouse gas emissions and accidents at work—according to the terms set out in the base information document for inclusion of promissory notes, duly registered with MARF by the issuer—that, if not met, imply a commitment of contributions to sustainable projects.

The promissory note program was reviewed and supported by a second-party opinion issued by G-advisory. In this context, it was particularly complex to reach a consensus between the issuer and the consultancy firm on some key performance indicators (KPIs) that, despite an annual review due to the promissory note program’s one-year term, were stable in the long term, with the clear aim of transmitting stability to the market.

The team advising on the operation was made up of Cuatrecasas lawyers: Miguel Cruz, Gonzalo Terceño and Miguel Ángel Gonzalo.