Spanish utility Iberdrola SA has successfully raised AUD 750 million (USD 489.8 million/EUR 462.4 million) through the issuance of “kangaroo” green bonds in Australia. The proceeds will be used to fund the company's renewable energy projects in the country.
The bond issuance attracted strong investor interest, with total demand reaching AUD 2.1 billion, oversubscribed by 2.8 times. Over 80 investors participated in the transaction. The offering was divided into two tranches: a six-year bond issue worth AUD 350 million with a coupon of 5.38%, and a 10-year bond issue worth AUD 400 million with a coupon of 5.87%.
This issuance is part of Iberdrola's strategy to diversify its financing sources. Deutsche Bank, Mizuho, ANZ, Sumitomo, and Bank of Tokyo-Mitsubishi were involved in the placement.
Iberdrola, which acquired Australian renewable energy company Infigen in 2020, currently has around 1 GW of installed renewable capacity in Australia, with a project portfolio exceeding 2 GW. In September, the company began construction on its first project in Queensland, the 376-MW Broadsound solar farm, which will also feature a 180-MW co-located battery.
This green bond issuance follows a similar deal made in the UK market last month.
