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Iberdrola Secures €750 Million in Green Debt Amid €4 Billion Demand Surge

Iberdrola Secures €750 Million in Green Debt Amid €4 Billion Demand Surge

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  • Iberdrola places €750 million in 10-year green bonds, achieving a 3.625% coupon with high investor interest.
  • Demand exceeded €4 billion, highlighting strong market confidence and investor interest in green finance.
  • The funds will support Green Eligible Assets, bolstering Iberdrola’s sustainability initiatives.

Iberdrola, Europe’s leading electricity company, has successfully issued a 10-year green bond worth €750 million. This bond, with a coupon of 3.625%, saw demand exceed €4 billion from over 220 investors, reflecting robust market confidence.

Investor confidence in Iberdrola is steady,” the company stated, pointing to the oversubscription by more than five times the amount placed. This strong demand allowed Iberdrola to set the credit spread at 83 basis points over the 10-year midswap benchmark, the lowest premium for a green bond issued this year.

This is Iberdrola’s third public operation in 2024, following a €700 million hybrid bond and a CHF 335 million issuance in the Swiss market. The company will present its half-year results on July 24, with most of its annual financing plan already successfully executed.

We have taken advantage of a stable market environment,” Iberdrola noted, referencing the calm international context post-France election results.

The bond placement saw significant interest from ESG investors, with 85% of the issuance allocated to this group. The geographical distribution included France (36%), Germany (16%), the UK (17%), Benelux (15%), and other European countries (16%).

Green bonds tend to generate higher demand and lower cost, as socially responsible investors add to the interest of mainstream investors,” Iberdrola emphasized.

Nine banks, including BBVA, Bank of America, HSBC, and Wells Fargo, facilitated the placement. This move strengthens Iberdrola’s liquidity ahead of potential market volatility post-summer.

Iberdrola’s continued success in green finance is underscored by recent transactions, including a €700 million green loan with the European Investment Bank and a €300 million partnership with the World Bank for renewable projects in emerging markets.

As a global leader in sustainable finance, Iberdrola has over €50 billion in outstanding sustainable transactions, including nearly €22 billion in green bonds. Since pioneering green bonds in Spain in 2014, Iberdrola has remained at the forefront of green finance.

Related Article: Iberdrola Issues USD $375 Million Green Bond to Diversify Financing Sources

This transaction allows us to strengthen our liquidity position at excellent conditions,” Iberdrola affirmed, highlighting the favorable market timing and investor participation.

Iberdrola’s commitment to sustainability continues to attract substantial investor support, reinforcing its position as a global benchmark in green finance.

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