Cepsa raises €750m financing for biofuel, hydrogen plans


Spanish multinational oil and gas company Cepsa has successfully raised €750m from bond issue to bolster production of 2G biofuels including sustainable aviation fuel, HVO and hydrogen.

This is the largest-ever bond issuance by Cepsa well above previous issues. The issue closed with an annual coupon of 4.125% and maturity in April 2031.

“The success of this bond issue reflects the support from the investment community for Cepsa’s transformation strategy and their confidence in our business prospects for the coming years. This transaction diversifies our sources of financing and strengthens our liquidity position, allowing us to comfortably meet our debt commitments and investment plans,” said Carmen de Pablo, CFO, Cepsa.

The company is planning to use the funds to support its recently-launched Positive Motion strategy to become a European leader in the production of 2G biofuels and green hydrogen, and the deployment of a network of ultra-fast electric chargers.

Under its 2030 Positive Motion strategy, Cepsa is planning to become the leading biofuels producer in Spain and Portugal. The company is targeting 0.8m tons of SAF production per by year by 2030 – equivalent to meet one-third of the demand likely to come from European regulations put in place.

Overall, the company is planning to produce 2.5m tons of 2G biofuels by 2030.

The company already has 35% share of the Spain’s aviation market with standing partnerships with major airlines including Iberia.

Beyond biofuels, the company also has plans to lead the green hydrogen production in Spain and Portugal with projects to set up 2GW equivalent capacity by 2030.

Cepsa was recently reaffirmed by S&P and Fitch with an investment grade rating (BBB-) and stable outlook.