Iberdrola SA, Spain’s biggest utility, is seeking to refinance debt including a 2.6 billion-euro ($3.3 billion) revolving credit facility due next year, according to two people with knowledge of the matter.
The company has asked lenders to propose terms for the pact, which will replace a credit line maturing December 2014, said the people, who asked not to be identified because the terms are private. The existing loan pays interest of 75 basis points more than the euro interbank offered rate, according to data compiled by Bloomberg.
Iberdrola joins fellow Southern European corporates, including Telefonica SA of Spain, Italy’s Enel SpA, Telecom Italia SpA, Fiat Industrial SpA, and EDP-Energias de Portugal SA, which have raised more than 17 billion euros of loans to refinance debt this year as credit markets in the region improve, Bloomberg data show.
The utility is rated Baa1 by Moody’s Investors Service, BBB by Standard & Poor’s and BBB+ Fitch Ratings, the second- and third-lowest investment grade levels, the data show.
Officials in Iberdrola’s Madrid-based press office didn’t immediately return two phone calls and an e-mail seeking comment on the financing.