Iberdrola, a global provider of energy and power, announced that it has offered €1.5 billion in green bonds. Despite recent market challenges, demand from investors was strong.
Iberdrola intends to invest heavily in its clean energy capacity, as evidenced by its announcement last week of plans to invest €47 billion between 2023 and 2025, including €17 billion for renewable energy and €27 billion in its electricity networks, and a goal to increase renewable capacity to 52,000 megawatts by the end of 2025. The business announced earlier this year that it intends to invest €150 billion over the next decade, tripling its capacity for renewable energy and doubling its network assets.
The green bond offering, consisting of a €750 million bond with a six-year maturity and a €750 million bond with a ten-year maturity, was more than 3.5 times oversubscribed, with orders exceeding €5.3 billion. Despite a challenging market environment, the issue was received with high demand, resulting in a 13% fall in worldwide green bond issuance volumes from the previous quarter.
The majority of the deal, according to the company, was put with ESG investors.
The transaction is the latest in a series of sustainable finance transactions for Iberdrola, including a €2.5 billion sustainability-linked credit line signed in July, a €1 billion green loan with Banco Santander announced in April, and a €550 million green loan agreement with the European Investment Bank (EIB).
Iberdrola announced plans for its finance structure to contain a rising proportion of green and sustainable products by 2025, which is anticipated to account for approximately two-thirds of the company's debt.
JP Morgan (Coordinator), Caixabank, Citi, Commerzbank, Crédit Agricole, Deutsche Bank, Morgan Stanley, MUFG, Natwest, and Royal Bank of Canada participated in the placement.