Iberdrola continues to diversify its sources of financing. The company, chaired by Ignacio Galán, has issued 12-year green bonds for £500 million (€600 million). This is Iberdrola’s largest issue in sterling since 2009. The company last issued a bond in Sterling in 2019, through its subsidiary Scottish Power Transmission. In addition, it is its first green bond Iberdrola has issued in sterling. Iberdrola becomes the only European utility able to access EUR, GBP and CHF in 2024.
Demand exceeded £2.1 billion, and this has allowed the spread over the reference interest rate to be reduced to 95 basis points (from the initial 125 basis points). This is the largest reduction recorded in this market by a recurring issuer this year. The coupon has been set at 5.25%, after attracting the interest of more than 140 investors (the largest number for a corporate issuer in the sterling market this year), especially those committed to ESG, thanks to the green nature of the transaction, which will finance future investments in the United Kingdom in the renewables business.
Barclays, HSBC, Goldman Sachs and NatWest all participated in the issue. Iberdrola is the only Spanish corporation to access the GBP market in 2024.
This is the sixth public transaction by Iberdrola in the market so far in 2024. The first was the hybrid bond of €700 million issued in January; the second, in the Swiss market for 335 million francs at the end of June; the third, the senior bond for €750 million issued in July; the fourth was carried out in August, when Iberdrola placed $525 million dollars through the US subsidiary; and the fifth took place on September 23, when it sold €2.15 billion in the largest issue of senior debt in its history.
The rate achieved is equivalent to that which would have been obtained in the Euromarket, with additional value of diversification of currency.
