Iberdrola issues EUR 850 million in green bonds with strong investor support

Iberdrola's ten-year bond issue, backed by strong demand, demonstrates the strong support and confidence that investors have in the company.

• With strong demand exceeding 2,000 million euros, the credit spread was set at 60 basis points over the corresponding benchmark (ten-year midswap), a very narrow level that allowed a coupon of 3.625% to be set.
• Iberdrola has tapped the European fixed income market, as it did in March and November last year, once again successfully closing a EUR 850 million senior debt transaction with a ten-year maturity. The transaction was carried out in green format, as is now the Group's norm, and was well received by investors. 
• This was the company's second public transaction so far this year before presenting its first half-year results, following the hybrid bonds issued in January.
• The good conditions obtained demonstrate the solidity and robustness of Iberdrola's solvency, as well as the confidence that investors continue to place in it, as already shown in the latest operations in November 2022 and January 2023, following the positive reception of the update of the strategic plan for the period 2023-2025, carried out in London in early November before the main stock market analysts.
• A total of 142 investors participated in the issue, with the placement distributed in France (34%), Germany-Austria (21%), Benelux (17%), the UK (16%) and other European countries (12%).
• Green bonds tend to generate higher demand and lower cost, as interest from socially responsible investors is added to the interest of mainstream investors. A majority of the transaction (87%) was placed with ESG investors, so Iberdrola continues to diversify its investor base and expand demand, which improves the execution of these transactions in difficult market times. 
• The funds raised will be allocated to Green Eligible Assets, as defined in Iberdrola's Green Financing Framework.
• Eight banks participated in the placement: Barclays, Citi, Crédit Agricole, Deutsche Bank, Goldman Sachs, Sumitomo, JP Morgan and Unicaja-Kenta Capital, in a less volatile market context following the greater certainty regarding the level of terminal interest rates in the various economies, although still complex.
• This operation allows it to reinforce its already comfortable liquidity position, at excellent conditions and at a good market moment, with terminal rates very close, while offering investors the possibility of participating in a senior Iberdrola operation in the first part of the year. 
• With this new issue, the company chaired by Ignacio Galán continues to consolidate its leadership in sustainable financing, with more than EUR 50,000 million in outstanding operations, of which close to EUR 18,500 million are green bonds (including this new EUR 850 million operation).