Approved at Board meeting today
IBERDROLA RAISES INTERIM DIVIDEND AMOUNT BY 5% AND BRINGS FORWARD PAYMENT
DATE TO DECEMBER 30
The Company will pay an interim 2009 dividend of €0.143 per share
IBERDROLA will propose a new remuneration plan to the Annual Shareholders Meeting which will allow shareholders to opt for receiving dividends in new shares or in cash
The Company projects total dividend payment for 2009 in line with 2008, pending approval by the Shareholders Meeting
The Board of IBERDROLA today approved a 5% increase in the global amount allocated to the ordinary interim dividend for 2009 compared to the amount paid last year and agreed to bring forward the payment date to December 30.
In per share terms, the interim dividend will be a gross €0.143 for 2009, unchanged on the previous year’s interim payment. The Board estimates that total dividend for 2009 will be in line with that of 2008, pending approval by the Annual Shareholders Meeting.
The Board of IBERDROLA also examined the possibility of offering a new remuneration plan for shareholders to take effect with the payment of the final dividend for 2009 in July 2010. In the event that this mechanism is approved, IBERDROLA shareholders will be able to opt either for receiving dividends in shares or in cash.
The first option will involve a scrip issue that requires prior approval by the Annual Shareholders Meeting, to be held in the first quarter of 2010. Shareholders would receive one subscription right for each share listed on the Madrid, Barcelona, Bilbao and Valencia stock exchanges.
The cash option would involve two possibilities for shareholders. First, by selling the subscription rights to IBERDROLA, which would guarantee a fixed price, or alternatively by selling the rights in the market, with the proceeds governed by the market price at the time.
Proposal to the 2010 Shareholders Meeting
The Board of IBERDROLA agreed to submit this proposal for approval at the next Annual Shareholders Meeting, having analysed the corporate, regulatory, accounting and tax aspects of the proposal.
On convening the AGM, the Company will provide shareholders with a report by the Board explaining the proposal to increase capital and to establish this new remuneration scheme.
The capital increase will be exempt from costs and commissions for subscribers. IBERDROLA will assume the costs of emission, subscription, distribution, listing and other related aspects.
Shareholders should be aware that Iberclear depositaries that hold their shares may under current legislation charge commisions and administration costs related to the holding of these shares in their accounting records. They can also charge commissions and costs relating to purchase and sale orders for subscription rights.
This communication does not constitute an offer of purchase, sale or exchange or a request for an offer of purchase, sale or exchange of values. The shares of Iberdrola S.A. cannot be offered or sold in the United States, except if this is carried out through a declaration of effective notification of what is laid out in the Securities Act or under the protection of a valid exemption of the need for notification.