Iberdrola’s €1.5bn green bond issuance three times oversubscribed

Spanish utility giant Iberdrola has raised €1.5bn through its latest green bond issuance amid strong demand from European investors.

The utility firm closed an issue of senior European green bonds with four- and 10-year maturities, with orders from 330 investors exceeding €4.5bn.

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French and British investors each accounted for around a quarter of demand, while Spanish and Portuguese investors purchased 16% of the bonds, which comply with the new European Green Bond Standard.

Iberdrola raised €750m through shorter-dated bonds maturing in June 2030 with a coupon of 3.125%, and a further €750m through longer-dated debt maturing in June 2036 with a coupon of 3.75%.

Funds from the issuance will be used to finance investments in networks in the main countries in which Iberdrola operates, as well as to selectively refinance renewable energy projects, the company said.

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

Iberdrola is one of the largest corporate issuers of green bonds, having raised more than €14bn through green debt issuance to date.

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