Iberdrola Raises €750 M Green Bond Over 10 Years

Iberdrola Raises €750 M Green Bond Over 10 Yrs

Spanish utility Iberdrola has raised €750 million in a 10-year bond issuance under the European Union’s new Green Bond Standard (EU GBS), becoming the first Spanish company to do so. The offering also complies with the Green Bond Principles set by the International Capital Market Association (ICMA), making it one of the first to align with both frameworks.

Investor demand was strong, with the bond attracting more than €3.7 billion in orders—five times the issuance size—marking the largest order book for a senior Iberdrola transaction since 2021. The issue, priced at a spread of 110 basis points over the 10-year midswap, carries a 3.5% coupon and was placed at a negative premium relative to its theoretical value in the secondary market, reflecting robust investor appetite.

Iberdrola’s renewable projects

Proceeds from the bond will fund a range of Iberdrola’s renewable energy projects, including both operational assets and those under construction. The company said the transaction demonstrates market confidence in its strategy and the appeal of high-standard green financial instruments.

More than 170 investors participated in the deal, with 93% classified as sustainable investors. Geographically, the bond was distributed across the UK (32%), France (28%), Germany (11%), Benelux (10%), Spain (9%) and other European markets (10%).

€400 million green bond

The issuance follows Iberdrola’s €400 million green bond in March, which was indexed to its share price and carried a 1.5% coupon over five years. Banks involved in the latest placement included Bank of China, BBVA, CIC, Crédit Agricole, Deutsche Bank, HSBC, MUFG, and UniCredit.

Iberdrola said the transaction strengthens its liquidity position, which stood at €20.9 billion at the end of March. The company highlighted the favourable market conditions for the issue and its ongoing focus on combining international expansion with financial discipline.

In the first quarter, Iberdrola reported an 11% increase in funds from operations (FFO) to over €3.5 billion. The group’s cash flow to net debt ratio was 22.3%, helping it maintain its investment-grade credit rating after the consolidation of UK-based ENW.