Iberdrola launches €1.5 billion green bond issue with strong investor demand

Iberdrola has successfully closed a European senior green bond issue for a total amount of €1.5 billion, structured in two tranches with 4- and 10-year maturities, as reported to the Spanish National Securities Market Commission (CNMV).

The transaction attracted strong investor demand, exceeding €4.5 billion — three times the amount placed — which enabled the company to significantly improve the initial terms. This was made possible by the participation of more than 330 qualified international investors, mainly from France (23%), the United Kingdom (22%) and Spain and Portugal (16%).

The first tranche, amounting to €750 million and maturing in June 2030, has a coupon of 3.125%. The second tranche, also amounting to €750 million, matures in June 2036 and has a coupon of 3.75%.

As in previous issues, Iberdrola complies in this transaction not only with the ICMA Green Bond Principles, but also with the new European Union Green Bond Standard.

The proceeds from this issue will be used to finance investments in grids in the main countries where Iberdrola operates, as well as to selectively refinance renewable energy projects, in line with the priorities of its strategic plan. In this way, the company reinforces its commitment to expanding its grid infrastructure — key to electrification — and to selective growth in renewables.

The transaction demonstrates the company’s ability to access the markets and take advantage of the most favourable windows.

The global coordinators were HSBC and Santander, together with CaixaBank, Crédit Agricole, Intesa Sanpaolo, Natixis, NatWest and Scotiabank as active bookrunners.

The level of demand and the terms achieved once again demonstrate the strong confidence of the market and investors in the strength and solvency of the Group’s business and growth plans.