Iberdrola has completed its largest issue of green bonds in sterling in 15 years.
The company issued 12-year green debt amounting to 500 million pounds (approximately 600 million euros), with demand reaching four times the issuance size.
This enabled Iberdrola to secure a coupon of 5.25%.
This is the first sterling bond Iberdrola has issued since 2019, when ScottishPower Transmission released a 350 million pounds bond.
It is also Iberdrola’s largest transaction in the UK market since 2009.
Additionally, it is the company’s first green bond issued in sterling, making Iberdrola the only European utility to access EUR, GBP and CHF in 2024.
Investor demand totalled 2.1 billion pounds (2.5 billion euros), reducing the spread over the reference interest rate to 95 basis points from an initial 125 basis points.
This marks the largest spread reduction by a recurring issuer in the market this year.
The bond attracted over 140 investors, the highest number for a corporate issuer in the sterling market in 2024.
The funds will support future renewable energy investments in the UK.
