Iberdrola has issued AU$750 million (USD 487.5 million) in green bonds, marking its debut in Australia’s ‘kangaroo’ bond market and becoming the first non-financial Spanish company to issue in this segment. Chaired by Ignacio Galán, the company is diversifying its financing portfolio to support renewable energy investments in Australia.
The bond issuance consists of two tranches: AU$350 million (USD 227.5 million) with a six-year term and AU$400 million (USD 260 million) with a 10-year term. The offering was oversubscribed by 2.8 times, drawing AU$2.1 billion in demand. The weighted average cost of the bonds was set at less than 5.65%, with an average maturity exceeding seven years.
More than 80 investors participated in the transaction, including significant interest from Australian and Asian markets. ESG-focused investors played a notable role, attracted by the green nature of the bonds, which will finance Iberdrola’s renewable energy projects in Australia.
This issuance aligns with Iberdrola’s global financing strategy, following bond operations in Swiss, British, and Norwegian markets earlier in 2024. In September, the company raised €2.15 billion in its largest-ever senior debt issue and issued its first green bond in pounds sterling in 15 years. These milestones reflect Iberdrola’s efforts to diversify funding sources and strengthen its global capital market presence.
The Australian transaction follows a strong financial performance in the first nine months of 2024, during which Iberdrola reported a net profit of €5.47 billion, representing a 14% year-on-year growth before extraordinary items. The company’s robust financial strategy has consistently attracted international investor confidence.
