Iberdrola Raises $1.7B from Debt Instrument Sale

Iberdrola SA said Monday it had issued EUR 1.5 billion ($1.74 billion) of senior green bonds maturing in 4 years and 10 years.

The 2030 tranche, totaling EUR 750 million, has an interest rate of 3.125 percent. The second tranche, also worth EUR 750 million, carries a 3.75 percent interest rate.

"The transaction attracted strong investor demand, exceeding EUR 4.5 billion - three times the amount issued - allowing pricing to be tightened significantly from the initial guidance", the Spanish power and gas utility said in an online statement, "More than 330 qualified international investors participated in the transaction, primarily from France (23 percent), the United Kingdom (22 percent), and Spain and Portugal (16 percent)".

HSBC and Santander backed the capital raise as global coordinators. CaixaBank, Crédit Agricole, Intesa Sanpaolo, Natixis, NatWest and Scotiabank served as active bookrunners.

"The proceeds will be used to finance network investments in Iberdrola's core markets, as well as to refinance selected renewable energy projects, in line with the priorities set out in the company's strategic plan", Iberdrola said. "Through this issuance, Iberdrola continues to strengthen its commitment to expanding electricity network infrastructure - a key enabler of electrification - while pursuing selective growth in renewable energy.

"The transaction highlights the company's strong access to capital markets and its ability to take advantage of favorable market conditions".

Under an updated global investment plan it unveiled September 24, 2025, Iberdrola plans to spend EUR 58 billion by 2028, focusing on expanding its regulated networks business.

Eighty-five percent of the total investment is meant for "A-rated countries with stable, predictable and attractive regulatory frameworks", Iberdrola said at the time. The UK has been allotted the biggest chunk at EUR 20 billion, followed by the United States at EUR 16 billion.

At the end of the first quarter of 2026 Iberdrola had EUR 4.87 billion in cash and cash equivalents. Current assets stood at EUR 24.44 billion.

Current liabilities totaled EUR 29.75 billion including EUR 12.67 billion in finance debt. "Adjusted FFO [funds from operations] financial ratio to adjusted net debt stands at 24.0 percent and the current liquidity position amounts to EUR 21,439 M covering 23 months of financing needs", Iberdrola said in its quarterly report.

Its installed capacity expanded 3.8 percent year-on-year to 58,877 megawatts (MW) during the first three months of 2026, with renewables increasing 4.9 percent to 46,741 MW.

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