Iberdrola Issues €1.5 Billion Green Bond to Finance Grid, Renewables Investments

Global energy and electricity provider Iberdrola announced today that it has raised €1.5 billion (USD$1.7 billion) through a European senior green bond issuance, with proceeds to be used to finance investments in electricity grids across several countries where the company operates, as well as renewable energy projects.

The transaction attracted strong investor interest, drawing participation from more than 330 qualified international investors. Demand exceeded €4.5 billion (USD$5.2 billion), approximately three times the amount offered, enabling the company to improve the initial pricing terms.

Iberdrola said that proceeds from the new offering will be used to finance investments in grids in the primary countries where the company operates, and to selectively refinance renewable energy projects, in line with the priorities of its strategic plan for the development of grid infrastructure.

Iberdrola is one of the largest corporate issuers of green bonds, using the instruments to fund projects including renewable energy, energy efficiency, clean transportation and waste management. The company announced plans in 2021 for its financing structure to have an increasingly higher percentage of green and sustainable products. In 2025, 99% of the financing signed by the company was sustainable, with the group’s sustainable financing as of the end of 2025 exceeding €66 billion.

The new issuance was structured in two tranches with maturities of four and ten years. The first tranche, totaling €750 million (USD$870 million), matures in June 2030 and carries a coupon of 3.125%, while the second €750 million tranche matures in June 2036 and carries a coupon of 3.75%.

The transaction complies with the ICMA Green Bond Principles as well as the European Union Green Bond Standard (EuGB), the company said.

The issuance follows the company’s raise in October 2025 of €1 billion (USD$1.1 billion) in the first-ever offering of a hybrid green bond to be issued under the EuGB.

Global Coordinators on the transaction included HSBC and Santander, with CaixaBank, Crédit Agricole, Intesa Sanpaolo, Natixis, NatWest and Scotiabank acting as Active Bookrunners.