Iberdrola issues a "Green EU" hybrid bond for 600 million euros

Iberdrola has once again accessed the capital markets, this time to refinance a hybrid bond maturing at the end of April this year. The company has placed €600 million of green hybrid bonds, as reported to the National Securities Market Commission (CNMV). The bond, which by its nature as a hybrid is in principle perpetual, has a repurchase option at the same time that begins from December 2032.

The demand registered has reflected the great interest of investors in Iberdrola, reaching more than 5,000 million euros, with the participation of almost 280 qualified international investors, which has allowed Iberdrola to significantly narrow the margin offered. The main geographies among which the operation is distributed are the United Kingdom (27%), France (24%) and Germany (14%), Spain (10%), the Netherlands and Luxembourg (10%) and Italy (5%). 

Finally, with a book close to 2,000 million euros, Iberdrola has managed to place the coupon at 3.95%, highly competitive and below the theoretical reference according to the price of its bonds in the secondary market, achieving the lowest premium in history for a Spanish issuer. All this highlights investors' strong appetite for Iberdrola's credit and their confidence in the Group chaired by Ignacio Galán, after the good results for the 2025 financial year presented yesterday, placing it as the best in class in the market.

The company has taken advantage of the market window that emerged after its results presentation, with cost levels at annual lows and anticipating a possible avalanche of competitive supply from next week.

Eight top-tier international banks have participated in the placement: BNP, HSBC, Unicredit, BBVA, Santander, Natixis, SMBC and Commerzbank, which have facilitated access to investors in a very satisfactory way.  

It should be noted that it is a green bond, which combines both ICMA's Green Bond Principles and the new European Green Bond Standard "EU Green", with more than 62% participation from sustainable investors.

The issue closed today by Iberdrola is its first public operation on the market so far this year. This operation will serve to refinance an operation of the same type whose repurchase will take place soon, thus keeping the company's hybrid volume stable at an amount of 8,250 million euros, as committed by the issuer at its recent Capital Markets Day in London.

The hybrid bonds count as 50% capital, in accordance with the methodology of the main rating agencies, so this operation contributes to maintaining the group's credit ratings. The last issuance of this type of debt by Iberdrola dated from November 2024 with a coupon of 4.247%.