Norwegian sovereign wealth fund Norges Bank has increased its stake in energy company Repsol to over 5%, making it its second largest shareholder. This news represents important support for Repsol and reaffirms Norges Bank’s commitment to the company and its commitment to climate change.
Norges Bank exceeds 5% stake in Repsol
Norges Bank, which manages Norway’s sovereign wealth fund, has increased its stake in Repsol, now holding 5.042% of its capital. This represents a significant increase from the 3.5% the fund previously held. According to the National Securities Market Commission (CNMV), Norges Bank directly controls more than 66.92 million Repsol shares. In addition, through collateral, it owns more than 12 million titles, representing 0.917% of the capital.
Repsol’s share price falls 16% this year Due to low oil prices, the company is public and the market is not appreciating the company’s green transformation. Meanwhile, its second-largest shareholder has taken advantage of those declines to increase its stake.
Norges Bank is Repsol’s second largest shareholder
The move makes Norges Bank Repsol the second largest shareholder, behind only BlackRock, which owns 5.475% of the company. In third place is Banco Santander with a 3.21% share through financial instruments. The presence of Norges Bank as the second largest shareholder increases confidence in Repsol and its long-term potential.
commitment to climate change
Norges Bank is considered to be one of the funds most committed to climate change in its investment policy. By increasing its stake in Repsol, the fund is reaffirming its support for a company committed to being a net-zero emissions corporation by 2050. This commitment to the environment is particularly relevant in the energy sector, where reducing emissions has become a fundamental objective.
Compensation of Shareholders
Repsol has allocated €2,400 million for awards and share buybacks in 2023, representing at least 30% of cash flow from operations. This strategy demonstrates the company’s commitment to its shareholders and its commitment to creating long-term value.
In short, increasing Norges Bank’s stake in Repsol to over 5% and becoming the second largest shareholder is a positive sign for the company. This support increases confidence in Repsol and its commitment to climate change. Despite the fall in share prices, support from Norges Bank could provide stability in the market. In addition, the shareholder compensation strategy demonstrates Repsol’s commitment to creating long-term value.