• The bond issuance saw demand exceed USD 2 billion.
• The cost of financing was reduced to 5.332%.
• Funds will boost Iberdrola’s network business in the US.

Iberdrola, through its US subsidiary NYSEG (New York State Electric & Gas Company), successfully placed a USD 525 million (EUR 490 million) 10-year green bond issue in the US. This issuance was met with strong investor demand, exceeding USD 2 billion, allowing the company to lower the financing cost to 5.332%.

Investor Confidence Soars

The transaction, occurring in mid-August, attracted over 60 US investor accounts. “This is further proof of our ability to attract investors in different markets,” said Ignacio Galán, Chairman of Iberdrola.

Strategic Financing Moves

The issuance was supported by banks including BNP Paribas, MUFG, Wells Fargo, Santander, SMBC, Intesa, and Commerzbank. This operation follows another on August 1, where Iberdrola, along with ICO, Sabadell, and HSBC, secured a syndicated green loan for EUR 500 million.

Historical Financial Moves

Iberdrola’s recent financial activities include:

• January: Issued EUR 700 million in hybrid bonds.
• June: Placed CHF 335 million in the Swiss market.
• July: Issued a EUR 750 million senior bond.

In December 2023, Iberdrola signed a EUR 5.3 billion credit line with 33 international banks, oversubscribed by more than 40%. This demonstrates the strong commitment of banks to Europe’s leading utility by capitalization the company stated.

Related Article: Indian Solar and Waste-to-energy Company Sael Issues $305 Million in Green Bonds

Global Leadership in Green Finance

Iberdrola is a global leader in sustainable financing. Since 2014, the company has issued around EUR 23,000 million in green bonds. The group’s historic investment plan, launched in March 2024, targets EUR 41 billion between 2024 and 2026 to drive electrification, particularly in electricity grids and renewables.

By leveraging sustainable financing, Iberdrola continues to reinforce its commitment to the environment while securing competitive funding for its ambitious growth plans.