Cox Raises US$2 Billion in Historic US Bond Debut

The Spanish utility completed one of the largest Latin American asset-backed bond offerings in the history of the US corporate debt market just two weeks after closing its US$4 billion acquisition of Iberdrola México, replacing a bridge loan with long-term financing after generating US$8 billion in investor demand on an initial US$1.5 billion target.

Cox completed its first bond issuance in the US market, raising US$2 billion in a transaction that the company described as one of the largest Latin American asset-backed offerings in the history of the American corporate bond market. The placement, executed through its subsidiary Cox Asset México in the 144A/Reg S format, was structured in two tranches and generated investor demand of approximately US$8 billion, prompting Cox to increase the offering from its initial US$1.5 billion target.

The two tranches were structured as US$1 billion in five-year bonds with a coupon of 7.125% and US$1 billion in 10-year bonds with a coupon of 7.75%. The initial size of the offering was oversubscribed more than five times, with participation from more than 200 institutional investors, primarily American and long-only funds. After order allocation, approximately US$6 billion in demand remained unsatisfied.

Nacho Moreno, CEO, Cox, described the reception as exceptional: "Receiving US$8 billion in demand and expanding the size of the offering reflects the solid positioning achieved in a very short period of time." Executive President Enrique Riquelme added: "The incorporation of Iberdrola México and the new capital structure significantly reinforce our operational and financial profile. We have a solid capital base to execute our strategic plan with discipline and continue generating long-term value."

From Bridge Loan to Long-Term Debt in Two Weeks

Cox closed the acquisition of Iberdrola México on April 24, 2026, financing it in part through a bridge loan of US$2.65 billion arranged by seven financial institutions. The US$2 billion bond placement refinances approximately two thirds of that bridge loan. The remaining third is fully secured through a long-term term loan, also with the same seven institutions, with an approximate five-year maturity. The company states that within barely two weeks of closing the acquisition, it will have replaced the entire short-term bridge financing with a debt structure with maturities between five and 10 years, fully aligned with the business's cash generation and deleveraging capacity.

The 144A/Reg S format is one of the most selective and demanding in global capital markets. Cox's entry into this format on a debut transaction, and at a size that ranks it among the largest Latin American asset deals in the market's history, represents a meaningful validation of its institutional standing as a creditor.

The Asset Base Behind the Bond

The financial architecture of the transaction is supported by one of the most significant private energy portfolios in Mexico. The acquisition of Iberdrola México encompasses 15 operational generation plants with a total installed capacity of 2,600MW, of which 1,368MW correspond to combined-cycle and cogeneration facilities, and 1,232MW to wind and solar assets. The transaction also includes Mexico's largest private qualified users supplier, holding approximately 25% market share, with more than 20TWh of electricity supply distributed across more than 500 large industrial and commercial clients. A development pipeline of approximately 12,000MW in various stages of advancement is also incorporated.

Mexico as Cox's Strategic Hub

The bond issuance formalizes Mexico's position at the center of Cox's international expansion strategy. Cox has committed to investing more than US$10.7 billion in Mexico during the 2025–2030 period, including the Iberdrola acquisition. The company has stated that the regulatory certainty provided by the new energy framework under Plan México makes the country a strategic market, and that it intends to align with Mexican government priorities in both the energy and water sectors.

The transaction adds a new dimension to an already active week for Mexico's private energy sector. President Sheinbaum on May 4 announced the authorization of 5,000MW of private renewable projects and the imminent disclosure of 81 mixed-investment projects totaling 11,000MW, a policy signal that directly complements Cox's 12,000MW development pipeline and its stated objective of expanding from its current 2,600MW operational base.

Cox's market presentation is scheduled for May 12, where the company will provide additional detail on the acquisition's integration and on its financial and operational roadmap for the combined platform.