Iberdrola sells €1bn hybrid green bond to refinance UK renewables
Iberdrola has become the first Spanish utility to issue green hybrid bonds after selling €1bn ($1.18bn) of half-debt and half-capital securities with a fixed coupon of 1.875%. Barclays, Credit Agricole, HSBCand JPMorgan were among the institutions participating in the oversubscribed issue, while the funds raised will be used to refinance investment in UK renewable energy projects. The bond follows the launch of Iberdrola's €500m green loan deal in February.
Iberdrola (BME:IBE) has issued EUR 1 billion (USD 1.18bn) worth of green hybrid bonds, seeking funds to refinance investment in renewable energy projects in the UK.

Bearing a fixed coupon of 1.875%, the bond was 3.3 times oversubscribed. It was issued on the Euromarket. According to the Spanish utility’s press statement on Tuesday, Iberdrola is the first Spanish company that issues a green hybrid bond and the second internationally.

The banks that assisted the issuance are Banco Bilbao Vizcaya Argentaria, Barclays plc (LON:BARC), BNP Paribas (EPA:BNP), Credit Agricole CIB, HSBC (LON:HSBA), ING Bank NV, JP Morgan (NYSE:JP), Mitsubishi UFJ Financial Group, Banco Santander (BME:SAN) and Unicredit Bank AG.

Iberdrola will have the rights to buy back the new bond at the offered rate within five and a half years. The hybrid bonds will be half-debt and half-capital, it said.

As part of its strategy to ensure that a large portion of its liabilities have “a green format”, in February Iberdrola announced a “green loan” deal amounting to EUR 500 million, the proceeds of which were allocated mainly for energy efficiency and renewable energy projects.

(EUR 1.0 = USD 1.181)

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