Iberdrola has further diversified its financing sources with a 12-year green bond issuance valued at £500 million ($648 million), marking its largest sterling-denominated issuance since 2009 and the first green bond in sterling for the company. Chaired by Ignacio Galán, Iberdrola is the only European utility in 2024 to tap the EUR, GBP, and CHF markets, meeting strong investor demand that reached £2.1 billion ($2.7 billion). This demand allowed a favourable reduction in the spread to 95 basis points, down from the initial 125, setting a 5.25% coupon rate and attracting over 140 investors, especially those focused on ESG.
The issuance, facilitated by Barclays, HSBC, Goldman Sachs, and NatWest, will fund renewables investments in the UK and makes Iberdrola the only Spanish company accessing the GBP market this year.
This bond represents Iberdrola’s sixth public market transaction in 2024, following successful issuances in euros, francs, and dollars, including a record €2.15 billion ($2.32 billion) senior debt issuance in September. The rate achieved is comparable to Euromarket levels, highlighting the strategic benefit of currency diversification.
Iberdrola’s financing efforts are backed by consistent market confidence, shown in recent loans such as a €120 million ($129 million) deal with the European Investment Bank (EIB) for energy innovation, a €300 million ($324 million) green loan with the World Bank, and a €500 million ($540 million) syndicated green loan with Cesce coverage alongside ICO, Sabadell, and HSBC. Additionally, Iberdrola secured a €700 million ($756 million) EIB loan to support Spanish electricity grid expansion.
In December 2023, Iberdrola signed its largest-ever credit line—€5.3 billion—with 33 international banks, at competitive rates similar to 2019 levels and oversubscribed by over 40%. These financial moves reinforce Iberdrola’s comprehensive investment plan launched in March 2024, which is a year ahead of schedule and aims to accelerate the electrification of the economy with expanded investments in renewable energy and electricity grids.