Iberdrola has successfully issued an €800 million hybrid green bond in the Euromarket, achieving a demand that exceeded €3 billion from more than 200 investors, primarily based in Europe and the United Kingdom. The transaction, oversubscribed 3.75 times, marks the company's most competitive hybrid issuance in the past three years.
The perpetual bond includes a par call option in August 2030 and will be used to refinance renewable assets linked to a 2019 hybrid bond, maintaining Iberdrola's hybrid debt at €8.25 billion. The company plans to call back the 2019 hybrid soon, ensuring stability in its hybrid bond stack.
Iberdrola highlighted favorable market conditions, including improved interest rates and credit spreads, as key contributors to the success of the transaction. “This success reflects the confidence of the market in Iberdrola's financial strength and growth prospects, even in a challenging geopolitical environment,” the company said in a statement.
The hybrid bonds are classified as 50% equity under methodologies of major rating agencies, contributing to the company's credit ratings. This issuance follows Iberdrola's January 2023 hybrid debt issuance, which carried a coupon rate of 4.87%.
The bond placement was facilitated by nine international banks, including BNP, Unicredit, JP Morgan, HSBC, Bank of America, Santander, Natixis, SMBC, and Commerzbank.
The deal represents Iberdrola's eighth market operation in 2024, bringing the total capital raised this year to €6.6 billion.
