Iberdrola has made financial history by becoming the first company in the world to issue a green bond that fully aligns with both the European Union’s new Green Bond Standard (EU GBS) and the Green Bond Principles established by the International Capital Market Association (ICMA).
The Spanish energy giant successfully raised €750 million through a 10-year bond issuance, which drew overwhelming demand—five times the amount offered—with a total order book exceeding €3.7 billion. This marks the largest investor book for a senior Iberdrola transaction since 2021, underscoring strong market confidence in the company’s sustainability agenda and the growing appetite for high-integrity green investments.
The bond carries a coupon of 3.5%, with a final credit spread of 110 basis points over the midswap reference rate. Notably, the transaction was priced at a negative new issue premium, the lowest among all issues since the announcement of tariffs under the Trump administration—signalling favourable pricing conditions and investor enthusiasm.
Proceeds from the bond will finance a portfolio of Iberdrola’s renewable energy projects, both operational and under construction, in line with the firm’s strategic decarbonisation objectives. Over 170 institutional investors participated in the placement, 93% of whom are sustainability-focused. Distribution was concentrated across the United Kingdom (32%), France (28%), Germany (11%), Benelux (10%), Spain (9%), and other European countries (10%).
This is Iberdrola’s second major green financing initiative this year, following a €400 million five-year green bond linked to its share price issued in March, which carried a 1.5% coupon.
The transaction further strengthens Iberdrola’s liquidity position, which stood at €20.9 billion at the end of March. The company’s financial resilience is reflected in an 11% year-on-year increase in funds from operations (FFO) during the first quarter, reaching over €3.5 billion. Following the consolidation of ENW, Iberdrola maintained a robust FFO to net debt ratio of 22.3%.
The placement was managed by a consortium of leading financial institutions including Bank of China, BBVA, CIC, Crédit Agricole, Deutsche Bank, HSBC, MUFG, and UniCredit.
