Spanish energy group Iberdrola has announced successful debt issuance for €750 million in the capital markets after receiving an initial demand of more than €4 billion from over 220 investors. Funds raised will be allocated to Green Eligible Assets as defined in its Green Financing Framework, that includes solar PV technology.
It has secured a coupon of 3.625% with the lowest premium for a green bond among those issued this year. This is its 3rd public operation in 2024, having previously issued a €700 million hybrid bond at the beginning of 2024, followed by one for CHF 335 million in the Swiss market.
For the latest round, out of more than 220 investors, the placement distribution was as follows: 36% in France, 16% in Germany, 17% in the UK, 15% in Benelux, and the remaining 16% in other European countries. It says 85% was placed with ESG investors, so it continues to diversify its investor base and broaden demand.
A total of 9 banks, namely BBVA, Bank of America, HSBC, Kutxabank Investment Norbolsa, Mizuho, Natixis, Standard Chartered, Unicredit and Wells Fargo, participated in the placement.
"This operation allows the group to shore up its liquidity, in anticipation of a potential increase in market volatility after the summer," said the management.
Last year in July 2023, Iberdrola issued €850 million of green bonds for its Green Eligible Assets (see Iberdrola Launches 10-Year Green Bonds).