Iberdrola Issues First EU Green Bond Under New EU Standard

Iberdrola has become the first company to issue a green bond under the European Union’s new Green Bond Standard (EU GBS), raising €750 million (US$843.9 million) through a 10-year senior bond placement.

The issuance is also the first globally to comply with both the EU GBS and the International Capital Market Association’s Green Bond Principles (ICMA GBP), marking a milestone in sustainable finance. According to the company, the offering drew demand exceeding €3.7 billion, five times the issue size, making it Iberdrola’s largest senior bond book since 2021.

The bond carries a 3.5% coupon and was priced with a credit spread of 110 basis points over the 10-year midswap benchmark. Iberdrola reported that the final cost of the issuance reflects a negative new issue premium, one of the lowest since the implementation of US tariffs under the Trump administration.

Proceeds will support renewable energy projects across Iberdrola’s portfolio, including both operational assets and those under construction. The issuance attracted more than 170 investors, with 93% classified as sustainable investors. Geographically, the allocation was led by the UK (32%), followed by France (28%), Germany (11%), Benelux (10%), Spain (9%), and other European markets (10%).

This transaction follows a €400 million green convertible bond issued in March, linked to Iberdrola’s share price, with a 1.5% coupon and a five-year maturity. The company said the issuance strengthens its liquidity position, which stood at €20.9 billion at the end of March, while offering investors exposure to a senior Iberdrola credit at favorable market conditions.