Iberdrola has issued a €1bn green hybrid bond to refinance a similar instrument maturing early next year, according to the company.
The perpetual bond includes a call option from August 2031 and carries a 3.75% coupon, which Iberdrola said is the lowest for any hybrid issued this year and the most competitive since March 2022.
Iberdrola added that the transaction complies with ICMA Green Bond Principles and the new EU Green Bond Standard, making it the first hybrid bond issued under the European Union’s framework.
Investor demand exceeded €8bn – eight times the final size – allowing a larger issue and lower pricing, the company stated.
More than 400 qualified international investors participated, primarily from Europe and the UK, and over 87% were sustainable investors or aligned with UN PRI, Iberdrola said.
Nine banks arranged the deal, including Barclays, Deutsche Bank, and Caixabank.
Iberdrola noted that the issue maintains its hybrid volume at €8.25bn, in line with commitments made at its Capital Markets Day.
Hybrid bonds are treated as 50% equity by major rating agencies, supporting Iberdrola’s credit position, the company said.
This is Iberdrola’s fourth public market transaction in 2025, bringing total funding raised to €7.15bn including a €5bn capital increase completed in July.