Spanish energy utility Iberdrola has successfully placed a €1.5 billion ($1.62 bn) senior green bond issuance in the European capital markets. The transaction, which was formally reported to the Spanish National Securities Market Commission (CNMV), was structured across two equal tranches with maturities extending to four and ten years.
The placement attracted substantial institutional interest, with aggregate demand exceeding €4.5 billion—oversubscribing the issuance three-fold. This strong order book enabled the bookrunners to tighten final pricing margins significantly from initial market guidance. More than 330 qualified international investors participated in the transaction, led by allocations to France (23 per cent), the United Kingdom (22 per cent), and the Iberian region of Spain and Portugal (16 per cent).
The financial architecture of the dual-tranche facility comprises:
- Tranche A: Totalling €750 million with a maturity date in June 2030, carrying a fixed coupon rate of 3.125 per cent.
- Tranche B: Totalling €750 million with a maturity date in June 2036, carrying a fixed coupon rate of 3.75 per cent.
Operationally, the issuance complies with the voluntary International Capital Market Association (ICMA) Green Bond Principles and aligns with the criteria set out under the European Union’s new Green Bond Standard (EU GBS).
Iberdrola intends to deploy the net proceeds to fund major electricity network infrastructure investments across its core geographic markets, alongside the selective refinancing of its existing renewable energy generation portfolio. The capital deployment matches the strategic electrification priorities established in the utility’s multi-year corporate growth plan.
The banking syndicate managing the transaction included HSBC and Santander acting as Joint Global Coordinators, with CaixaBank, Crédit Agricole, Intesa Sanpaolo, Natixis, NatWest, and Scotiabank operating as Active Bookrunners.
