Iberdrola Launches €1 Billion EU Green Hybrid Bond
- Iberdrola issued €1 billion in green hybrid bonds to refinance a maturing bond.
- The bond is perpetual with a repurchase option starting August 2031.
- The coupon rate is 3.75%, the lowest since March 2022.
- Nine international banks facilitated the placement, including Barclays and Deutsche Bank.
Bond Issuance
Iberdrola has issued €1 billion in green hybrid bonds to refinance a bond maturing early next year. The bond is perpetual with a repurchase option starting in August 2031 and a coupon rate of 3.75%, the lowest for such transactions since March 2022.
Investor Demand
The issuance attracted significant interest, with demand exceeding €8 billion, leading to an oversubscription of 8 times the final offer. Over 400 qualified international investors participated, primarily from Europe and the UK, with more than 87% being sustainable investors or aligned with the UN Principles for Responsible Investment.
Market Conditions
Iberdrola capitalized on favorable market conditions following its results presentation, with costs at annual lows and ahead of central bank meetings in the US and Europe. The transaction helps maintain the company's hybrid volume stable at €8.25 billion.
Bank Participation
Nine leading international banks, including Barclays, Deutsche Bank, and Mizuho, facilitated the bond placement, ensuring broad access to investors. The main geographical areas covered were the UK, France, Germany, Asia, the US, Canada, and the Nordic countries.
Source: Iberdrola