August 5, 2020

Iberdrola places 750 million in 5-year green bonds at 0.875% interest



Iberdrola has placed this Wednesday an issue of green bonds amounting to 750 million euros, with a maturity of five years and an interest rate of 0.875% per year, whose funds will be used to finance and refinance, in whole or in part, investments in renewables in Spain, Mexico and the United Kingdom.

The bonds mature on June 16, 2025, have a coupon of 0.875% per year and the issue price has been set at 99.784% of their nominal value, the electricity company has reported in a relevant event to the National Market Commission of Values ​​(CNMV).

The issue has been placed among 227 investors, mainly from Europe and the United Kingdom, and the interest that the bonds will earn has been set below 1%, despite the fact that these days the markets are experiencing great volatility due to the Covid- coronavirus crisis. 19, having registered a demand of more than 6,000 million euros.

Green bonds tend to generate greater demand, since the interest of regular investors is added to that of socially responsible investors, and in the case of this Iberdrola issue, a large part has been placed among that group.

Eight international banks have participated in the placement and the funds obtained will go mostly to onshore wind farms in the aforementioned countries.

The Iberdrola group has issued close to 11,000 million in green bonds since it closed its first placement of this type in 2014.

Today’s issue was the eighth senior public issue of this type made by Iberdrola from the corporation.

It has also carried out three subordinate public operations (commonly called hybrid bonds) in green format.

Likewise, green private placements have been made and green bonds have also been issued from group subsidiaries, such as the American Avangrid or the Brazilian Neoenergia.

In addition, at the end of 2016 Iberdrola signed the first green loan made in the world for an energy company worth 500 million euros and, at the beginning of 2018 and with a union of banks, also the first green loan in Latin America from its subsidiary Iberdrola Mexico.

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