Iberdrola has raised €600 million through the placement of green hybrid bonds aimed at refinancing a similar instrument due to mature at the end of April, the Spanish utility said on Thursday.
The company said demand exceeded €5 billion, drawing participation from nearly 280 qualified international investors. The orderbook reached close to €2 billion, allowing Iberdrola to fix the coupon at 3.95%.
It said the pricing was competitive and below the theoretical reference indicated by secondary market levels, adding that it represented the lowest premium achieved by a Spanish issuer in this format.
Investors were mainly from the United Kingdom, France, Germany, Spain, the Netherlands, Luxembourg and Italy, the company said.
Iberdrola said the transaction reflected investor confidence in the group chaired by Ignacio Galán, following what it described as strong 2025 financial results.
The utility added that it took advantage of a favourable market window after presenting its results, citing cost levels at annual lows and ahead of a potential increase in bond supply next week.
Eight banks acted in the placement: BNP Paribas, HSBC, UniCredit, BBVA, Banco Santander, Natixis, SMBC and Commerzbank.
The bond qualifies as green under both the ICMA Green Bond Principles and the European Green Bond Standard, with more than 62% participation from sustainable investors, Iberdrola said.
The issuance marks the company’s first public market transaction of the year and will refinance a hybrid bond that is set to be repurchased shortly. Iberdrola said the move keeps its total hybrid volume stable at €8.25 billion, in line with commitments outlined at its recent Capital Markets Day in London.
Hybrid bonds are treated as 50% equity by major rating agencies, supporting the group’s credit profile, the company added.
Iberdrola’s previous hybrid issuance was completed in November 2024 with a coupon of 4.247%.
