Cuatrecasas assists Iberostar Group with sustainable financing

Cuatrecasas has advised Spain´s Iberostar Group on the granting of its first sustainable financing

Spanish hotel chain Iberostar Group has reached a long-term corporate financing agreement with seven financial institutions, aimed at protecting the company’s liquidity to deal with the effects of the COVID-19 health crisis.

BBVA has acted as sustainability coordinator for the two framework agreements that have enabled the Iberostar Group to obtain sustainable financing. These agreements include various bilateral financing agreements between the Group and up to seven banks, including BBVA. This is a sustainable operation given that the terms of the financing are subject to the evolution of its ESG rating. The interest rate on all the loans will vary depending on the Iberostar Group meeting certain environmental, social and governance (ESG) sustainability benchmarks.

The financing responds to Iberostar Group´s firm committment to promoting a more responsible tourism business model that focuses on caring for people and the environment. In line with this commitment, the financing has taken place in ‘ESG-linked’ format, a type of financing whose conditions are linked to the evolution of the company’s environmental, social and governance rating.

The international sustainable investment agency Sustainalytics will be responsible for assessing the company’s ESG performance on an annual basis. This is the first sustainable financing formalised by the Spanish hotel chain.

Cuatrecasas advised Iberostar Group with a Barcelona office team led by Finance partner Pol Solsona (pictured left), and incluiding Banking & Finance Principal associate Levón Grigorián (pictured left) and legal intern Oriol Balsells.