Iberdrola has successfully issued an €800 million ($832 million) hybrid green bond in the Euromarket, the company announced to Spain’s National Securities Market Commission (CNMV). The bond is perpetual, with a call option set for August 2030, and carries a 4.25% coupon—the company’s most competitive hybrid issuance in three years.
The offering saw robust demand, attracting over €3 billion ($3.2 billion) in bids—3.75 times the issuance size—from more than 200 international investors, primarily in Europe and the United Kingdom. This strong investor interest allowed Iberdrola to achieve a near-zero new issuance premium, despite the challenging geopolitical and market conditions.
Proceeds from the bond will be used to refinance renewable energy assets associated with a 2019 hybrid bond being replaced, ensuring the company’s hybrid debt remains steady at €8.25 billion ($8.6 billion). The call for the existing bond will be executed shortly.
The hybrid bonds, classified as 50% capital under leading rating agencies’ methodologies, support Iberdrola’s credit ratings and financial flexibility. The company capitalized on favourable interest rates and tighter credit spreads to execute the issuance, showcasing investor confidence in its financial resilience, growth strategy, and sustainability commitments.
Nine prominent international banks facilitated the placement, including BNP Paribas, Unicredit, JP Morgan, HSBC, Bank of America, Santander, Natixis, SMBC, and Commerzbank. Iberdrola’s previous hybrid issuance, in January 2023, carried a 4.87% coupon.