Iberdrola Raises €1.5 Billion Through Oversubscribed Green Bond Issuance To Support Network And Renewable Investments

Iberdrola has successfully raised €1.5 billion through a senior green bond issuance in the European market, further strengthening its funding position and supporting its long-term investment strategy focused on electrification and renewable energy development. The transaction was structured in two equal tranches with maturities of four and ten years and was formally reported to the Spanish National Securities Market Commission (CNMV).

The issuance received a strong response from investors, attracting demand of more than €4.5 billion—three times the amount offered. The high level of interest enabled Iberdrola to significantly improve pricing conditions compared with the initial guidance provided to the market. More than 330 qualified institutional investors participated in the offering, highlighting the company’s strong reputation among global investors and the continued appeal of sustainable investment opportunities.

Investor participation was widely diversified across international markets. France accounted for the largest share of demand at 23 per cent, followed closely by the United Kingdom with 22 per cent. Investors from Spain and Portugal represented a combined 16 per cent of total participation, demonstrating strong support from both domestic and international markets.The first tranche of the issuance amounted to €750 million and carries a maturity date of June 2030. It was issued with a coupon of 3.125 per cent.

The second tranche, also valued at €750 million, matures in June 2036 and offers a coupon of 3.75 per cent. The dual-tranche structure allows Iberdrola to diversify its funding profile while securing long-term financing at competitive rates.As with its previous sustainable financing transactions, the company ensured that the bond issuance aligns with recognised international and European sustainability standards.

The bonds comply with the International Capital Market Association’s (ICMA) Green Bond Principles as well as the European Union’s recently introduced Green Bond Standard. Compliance with both frameworks reflects Iberdrola’s commitment to transparency and the use of capital for environmentally sustainable projects.

The funds raised through the transaction will primarily be used to finance investments in electricity network infrastructure across Iberdrola’s core markets. A portion of the proceeds will also be allocated to refinancing selected renewable energy projects. These investments are aligned with the priorities outlined in the company’s strategic plan, which places a strong emphasis on modernising electricity grids and expanding clean energy generation.

Electricity networks have become an increasingly important focus for energy companies as countries accelerate electrification efforts. Upgraded and expanded grid infrastructure is essential for integrating renewable energy sources, improving system reliability, and supporting the growing demand for electricity driven by decarbonisation initiatives.

Through this latest bond issuance, Iberdrola continues to reinforce its commitment to developing the infrastructure needed to support the energy transition while pursuing targeted growth in renewable energy.The successful completion of the transaction also highlights the company’s strong access to international capital markets and its ability to secure financing under favourable market conditions.

The substantial oversubscription demonstrates continued investor confidence in Iberdrola’s financial strength, long-term growth prospects, and sustainability-focused business strategy.Several major financial institutions supported the transaction. HSBC and Santander acted as Global Coordinators, while CaixaBank, Crédit Agricole, Intesa Sanpaolo, Natixis, NatWest, and Scotiabank served as Active Bookrunners.

The strong demand generated by the issuance and the favourable pricing achieved underline the market’s confidence in Iberdrola’s business model and strategic direction. As the company continues to invest heavily in electricity networks and renewable energy projects, access to sustainable financing remains a key component of its growth strategy and its broader contribution to the global energy transition.