Iberdrola successfully launches €1.5bn green bonds issue

Iberdrola has successfully closed an issue of European senior green bonds worth €1.5 billion, structured in two tranches of four and 10 years, as reported to the National Securities Market Commission.

The funds obtained from this issuance will be used to finance investments in networks in the main countries in which Iberdrola is present, as well as to selectively refinance renewable projects, in line with the priorities of its strategic plan.

The operation has registered a high demand from investors, exceeding €4.5 billion - three times the amount placed - which has significantly improved the initial conditions. 

This has been made possible by the participation of more than 330 qualified international investors, mainly from France (23%), the UK (22%) and Spain and Portugal (16%). 

The first tranche, amounting to €750 million and maturing in June 2030, has a coupon of 3.125%. For its part, the second tranche, also of €750 million euros, has a maturity in June 2036 and a coupon of 3.75%.

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Commitment to grid growth

As it did in previous issuances, Iberdrola complies not only with the ICMA Green Bond Principles, but also with the new European Union Green Bond Standard.

In this way, the company reinforces its commitment to the expansion of its grid infrastructures - key to electrification - and selective growth in renewables.

The operation demonstrates the company's ability to access the markets, which allows it to take advantage of the most favourable windows.

The global coordinators have been HSBC and Santander, together with CaixaBank, Crédit Agricole, Intesa Sanpaolo, Natixis, NatWest and Scotiabank as active underwriters.

In May, the company announced that five new agreements with leading companies in Italy across key sectors such as chemicals, manufacturing and food and beverages has led to it reaching 5MWh of electricity sold in the country through long-term clean power purchase agreements.

Iberdrola said the electricity supplied under these agreements is supported by 90MW of new photovoltaic capacity on the Italian peninsula.

More recently, Iberdola confirmed that it is to invest €4.5 billion to expand the energy network in Brazil.

Since 2001, the company has invested more than €175 billion in electricity grids, renewable energies, and energy storage to contribute to the creation of an energy model based on electrification