Spanish multinational electric utility Iberdrola has re-entered the US debt market directly for the first time since 2009, closing a $1.6 billion green bond offering to fund its expanding US renewable energy and grid operations.
The transaction attracted robust demand from institutional investors across international capital markets, with the orderbook exceeding $5 billion—over three times the final allocation. A total of 116 institutional investors participated in the placement, led predominantly by major US financial institutions, driven in part by the green asset qualification of the issuance.
The offering expands and diversifies Iberdrola’s direct financing channels, supplementing the borrowing activities of its existing US subsidiaries while helping optimise overall capital costs across both American and European debt markets. Company officials noted that the execution delivered pricing comparable to equivalent Euromarket financing options.
The $1.6 billion transaction is structured into two equal tranches:
- Five-year tranche: $800 million maturing on 4 November 2029, carrying a fixed annual coupon of 5.40 per cent.
- Nine-year tranche: $800 million maturing on 4 November 2033, carrying a fixed annual coupon of 5.85 per cent.
Proceeds from the bond issuance will be deployed to finance and refinance electricity network infrastructure—primarily power transmission systems and utility-scale renewable energy assets—within the United States. The move aligns with Iberdrola’s broader capital deployment strategy, which targets annual US infrastructure investments of approximately $5 billion over the coming years.
