Iberdrola Raises €1.5 Billion in Green Bond With 3x Investor Oversubscription
Spanish energy company Iberdrola raised €1.5 billion (USD $1.7 billion) through a senior green bond issuance, with proceeds to finance electricity grid investments across multiple countries and selective refinancing of renewable energy projects. Demand exceeded €4.5 billion from more than 330 institutional investors, approximately three times the amount offered.
The issuance was structured in two tranches: a €750 million tranche maturing June 2030 with a 3.125% coupon, and a €750 million tranche maturing June 2036 with a 3.75% coupon. The transaction complies with both the ICMA Green Bond Principles and the European Union Green Bond Standard. Iberdrola is one of the largest corporate green bond issuers globally, with 99% of its financing signed in 2025 classified as sustainable and total sustainable financing exceeding €66 billion as of year-end 2025.
The new issuance follows Iberdrola's October 2025 €1 billion hybrid green bond, the first offering of a hybrid green bond under the EU Green Bond Standard. The company's extensive track record in sustainable bond markets and its investment-grade credit profile enable it to access competitive pricing for green capital. Iberdrola's strategic plan prioritises electricity grid infrastructure development as a critical enabler of renewable energy integration across its operating geographies including Spain, the UK, the U.S. and Brazil.
Global Coordinators on the transaction were HSBC and Santander, with CaixaBank, Crédit Agricole, Intesa Sanpaolo, Natixis, NatWest and Scotiabank acting as active bookrunners. The issuance reinforces the continued depth of demand for investment-grade green bonds from European utilities even amid broader market volatility. For green bond market participants in India, Iberdrola's repeated successful issuances under the EU GBS provide a benchmark for how stringent labelling standards can support market access and competitive pricing.
Key figure — €1.5 billion raised with demand exceeding €4.5 billion from 330+ investors
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