Spain-based Utility Iberdrola Raises $931 Million Through Green Bonds

In the recent transaction, 87% of the placement was with ESG investors


Spain-based independent power producer Iberdrola has issued ten-year green bonds raising about €850 million (~$930.64 million). The proceeds from the bond issuance will be allocated to green eligible assets, as defined in Iberdrola’s Green Financing Framework.

The bond issuance witnessed demand exceeding €2 billion (~$ 2.1 billion).

Setting a credit spread of 60 basis points over the corresponding benchmark (ten-year mid-swap), the company achieved a very narrow level, allowing for a fixed coupon of 3.625%.

The transaction was carried out in a green format, aligning with Iberdrola’s commitment to sustainability.

In this transaction, 87% of the placement was with ESG (Environmental, Social, and Governance) investors.

A total of 142 investors participated in the issue with placements in various regions.

France accounted for 34% of the investors, followed by Germany-Austria (21%), Benelux (17%), the United Kingdom (16%), and other European countries (12%).

Eight banks — including Barclays, Citi, Crédit Agricole, Deutsche Bank, Goldman Sachs, Sumitomo, JP Morgan, and Unicaja-Kenta Capital — were involved in the placement.

The company has outstanding operations totaling over €50 billion (~$54.7 billion), of which close to €18.5 billion (~$20.2 billion) are in green bonds, including the latest issuance.

This is the company’s second public transaction so far this year before presenting its first half-year results, following the hybrid bonds it issued in January.

In June, Iberdrola and the European Investment Bank (EIB) signed a loan agreement worth €1 billion (~$1.07 billion) to bolster the energy transition in Europe by building 22 renewable energy projects with an installed capacity of 2.2 GW.

Iberdrola and the sovereign fund of Norway recently committed to a joint investment of €1.2 billion (~$1.3 billion) to develop 1.2 GW of new renewable energy capacity in Spain.