Iberdrola has successfully issued a €750 million green bond under the new European standard for EU Green Bonds (EU GBS), marking a significant milestone for the company and the green bond market. The bond will be used to fund renewable energy projects, both those already operational and others currently under construction.
The bond, which closed today, has a 10-year maturity and is the first in the world to simultaneously meet the EU GBS and the Green Bond Principles established by the International Capital Markets Association (ICMA). Iberdrola highlighted that this dual compliance represents a first for the green bond market.
Demand for the bond issuance was notably high, with orders exceeding €3.7 billion, more than five times the amount raised, and the largest book for a senior operation by Iberdrola since 2021. The strong demand underscored investor confidence in Iberdrola and its green investment strategy.
“The strong demand for this bond shows the trust investors have in Iberdrola’s renewable projects and our approach to green finance,” said the company. The bond was priced with a coupon of 3.5%, and a final credit margin of 110 basis points over the reference midswap for a 10-year term.
More than 170 investors participated in the offering, with the placement geographically diversified, including significant participation from the United Kingdom (32%), France (28%), and Germany (11%). Notably, 93% of the investors were categorized as sustainable.
This is Iberdrola’s second public green bond issuance in 2025, following a €400 million bond launched in March with a coupon of 1.5%. The new €750 million issuance helps strengthen Iberdrola’s liquidity, which stood at €20.9 billion as of March 31, 2025, and positions the company to continue its growth trajectory in renewable energy.
The company also confirmed plans to bring approximately 4 gigawatts (GW) of renewable energy online this year, with all energy expected to be sold by 2025. Iberdrola’s diversified business model, particularly its selective investments in renewables and growing networks, is expected to contribute to a double-digit increase in adjusted net profit for 2024.
