Pioneering Standard Compliance: Iberdrola becomes the first global issuer to align a green bond with both the EU Green Bond Standard (EU GBS) and ICMA Green Bond Principles.
Strong Market Demand: The €750M issuance attracted over €3.7B in demand—five times the offer—enabling a 3.5% coupon with a negative premium.
Investor Confidence in ESG Strategy: 93% of participating investors were ESG-focused, validating Iberdrola’s sustainability-led growth and financial resilience.
Iberdrola has achieved a global first, issuing a €750 million green bond that complies with both the newly introduced EU Green Bond Standard (EU GBS) and the International Capital Market Association (ICMA) Green Bond Principles. The bond, with a 10-year maturity and a 3.5% coupon, marks a significant milestone in sustainable finance and positions Iberdrola at the forefront of ESG-compliant capital markets.
“This transaction brings together the best market standards for the first time,” the company said, reflecting its deepening commitment to financial soundness and sustainability.
The issue was oversubscribed fivefold, attracting more than €3.7 billion in demand. That appetite enabled a credit spread of 110 basis points over the 10-year midswap and a coupon of 3.5%, set at a negative issue premium relative to secondary market valuations. It’s the lowest premium since the imposition of U.S. tariffs under the Trump administration.
Over 170 investors took part in the deal, with 93% classified as sustainable investors. The bond placement was widely distributed across Europe: UK (32%), France (28%), Germany (11%), Benelux (10%), Spain (9%), and other regions (10%).
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Proceeds from the issuance will fund a range of renewable energy projects, both operational and under construction. Iberdrola’s CFO noted, “This strengthens the company’s already comfortable liquidity position of €20.9 billion as of March-end and supports our ongoing renewable expansion.”
This marks Iberdrola’s second green capital market move in 2025, following a €400 million five-year green bond issued in March, indexed to its share price and priced with a 1.5% coupon.
The transaction was managed by a syndicate of leading global banks, including Bank of China, BBVA, CIC, Crédit Agricole, Deutsche Bank, HSBC, MUFG, and UniCredit.
As of Q1, Iberdrola reported a robust 11% increase in funds from operations (FFO) to €3.5 billion, with a cash flow to net debt ratio of 22.3%, underlining its ability to balance international growth with solid financial strength—a key factor in maintaining its investment-grade credit rating post the consolidation of ENW.
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