Iberdrola has issued a €750m bond under the new European standard for EU green bonds (EU GBS).
The €750m obtained from the issuance closed today will be allocated to various renewable projects, some already in operation and others under construction.
The issue will enable Iberdrola to raise the amount over 10 years.
The company said it is the first in the world to issue a bond that simultaneously complies with the EU GBS and the Green Bond Principles of the International Capital Markets Association (ICMA).
Demand has multiplied the amount placed by five, reaching the largest book of a senior operation by Iberdrola since 2021, demonstrating investors’ confidence in the electricity company and the investor appetite for this type of green instrument, which combines the best market standards for the first time.
This issue has captured the attention of investors and has obtained a strong demand of more than €3.7bn, which has allowed to obtain a final credit margin of 110 basis points over the corresponding reference (midswap for that ten-year term), a level that has allowed a coupon of 3.5% to be set.
The total cost represents a negative issue premium over the theoretical value of the bond according to the secondary market, resulting in the lowest of those recorded in all issues since the announcement of the Trump Administration’s tariffs.
More than 170 investors have finally participated in the operation, with the placement distributed in the United Kingdom (32%), France (28%), Germany (11%), Benelux (10%), Spain (9%) and other European countries (10%) with 93% of investors sustainable.
This is Iberdrola’s second public operation, after the green bond referenced to its share price launched last March with which it raised €400m over five years with a coupon of 1.5%.
Bank of China, BBVA, CIC, Crédit Agricole, Deutsche Bank, HSBC, MUFG and UniCredit participated in the placement.
The operation allows the company to strengthen its already comfortable liquidity position of €20.9bn at the end of March, at excellent conditions and at a good market time, while offering investors the possibility of participating in a senior Iberdrola operation in the first part of the year.
Thanks to its diversified business, with selective investment in renewables, with significant growth in networks, with significant financial strength, the company expects a double-digit increase compared to adjusted net profit in 2024, considering the positive impacts of regulated assets and US accounting standards.
This growth is supported by an increase of more than 10% in regulated assets with better rates. In addition, the group plans to bring about 4GW of renewable energy into operation this year, with 100% of the energy sold by 2025.