Iberdrola has returned to the capital markets with a €600 million green hybrid bond issue to refinance a hybrid instrument maturing at the end of April, the company said in a filing to Spain’s market regulator, the National Securities Market Commission (CNMV).
The bond, structured as a hybrid and therefore perpetual in nature, includes a repurchase option exercisable from December 2032.
Investor demand exceeded €5 billion, with participation from nearly 280 qualified international investors. The strong order book enabled Iberdrola to tighten pricing significantly. Final demand stood at close to €2 billion, allowing the company to set a coupon of 3.95%, below the theoretical secondary market reference level and marking the lowest premium achieved by a Spanish issuer in this format.
Geographically, the allocation was led by the United Kingdom (27%), followed by France (24%), Germany (14%), Spain (10%), the Netherlands and Luxembourg (10%) and Italy (5%).
The issuance follows the group’s 2025 results presentation and was launched during what the company described as a favourable market window, with borrowing costs at annual lows and ahead of anticipated supply from other issuers.
Eight international banks – BNP, HSBC, UniCredit, BBVA, Santander, Natixis, SMBC and Commerzbank – acted on the placement.
The bond qualifies as a green instrument aligned with ICMA’s Green Bond Principles as well as the new European Green Bond Standard (EU Green), with more than 62% of the allocation placed with sustainable investors.
This marks Iberdrola’s first public market transaction of the year. Proceeds will refinance an existing hybrid bond due for repurchase shortly, keeping the company’s total hybrid volume stable at €8.25 billion, in line with commitments made at its recent Capital Markets Day in London.
Under rating agency methodologies, hybrid bonds receive 50% equity credit, supporting the group’s credit metrics. Iberdrola’s previous hybrid issuance took place in November 2024 with a 4.247% coupon.
