Iberdrola has issued €1 billion in green hybrid bonds to refinance a hybrid bond maturing early next year. The bond, perpetual in nature, includes a repurchase option starting in August 2031 and carries a coupon of 3.75 per cent. The issuance complies with both the International Capital Market Association’s Green Bond Principles and the European Union Green Bond Standard.
Investor demand for the issuance reached €8 billion, exceeding the amount offered by eight times. Reportedly, more than 400 qualified international investors participated, primarily from Europe and the UK. Additionally, over 87 per cent of the total allocation was from sustainable investors or those aligned with the United Nations Principles for Responsible Investment. This high demand enabled Iberdrola to reduce the overall cost of the transaction.
The company took advantage of favourable market conditions following the release of its financial results and ahead of central bank meetings in the US and Europe. Nine international banks participated in the bond placement, including Barclays, Deutsche Bank, Mizuho, CACIB, MUFG, ING, Intesa, Wells Fargo, and Caixabank. Geographically, 31 per cent of allocations were from the UK, 19 per cent from France, 16 per cent from Germany, 5 per cent from Asia, 3.5 per cent from US and Canada, and 2.5 per cent from Nordic countries. Investment funds accounted for nearly 86 per cent of the investor base.
