On the other hand, as interest rates rise, financial expenses will also affect the profit and loss. As a consequence of these two factors, companies will tend to look more closely at equity financing and reduce their leverage, as they try to get more risk on their asset side.
Investors consider Iberdrola to be one of the highest growth stories in the eurozone in terms of profit growth for the next three to four years. It has a good credit rating and a solid financial position that allows it to continue growing even in a higher interest rate environment.
Most of our debt, about 70%, is either at a fixed or capped rate. So we are well prepared for rising interest rates, although we do not foresee them in the short term.
2. In the end, disclosure and transparency add value to companies. Investors today put a premium on companies with a high degree of both, so for Iberdrola the benefits of disclosure and transparency significantly outweigh the cost of compliance.
3. At Iberdrola we have, in our opinion, a very good pension scheme. We have externalised our pension plan, which is defined contribution. This means that there is no liability for the company because the plan is managed by top-rated financial institutions.