Iberdrola has launched a green bond issue of €400m indexed to its share price.
The maturity date is 2030 and the coupon has been set at 1.5%.
This type of bond is characterised by the fact that its profitability is linked to the evolution of the share of the issuing company – in this case, Iberdrola.
Investors can exercise a call option on the price of the company’s shares within the three months prior to their maturity.
This option will always be exercisable by payment of the difference. In other words, Iberdrola will not issue or deliver shares in any case, so it will not have any dilution effect on its current shareholders.
The transaction has been carried out with international banks, JP Morgan, Natixis, Mizuho and Morgan Stanley.
At the same time, Iberdrola is going to acquire a hedging option identical to the one sold within the bond, which allows it to be hedged against any risk of exercise by the bondholders in the event of a revaluation of the share above a certain level.
This level will be determined over the next few days.
This is not the first time that Iberdrola has placed a bond on the market for structured bonds linked to shares.
In 2022, the company launched an issue of green bonds referenced to its share price for an amount of €450m.