EUR-1bn green bond by Iberdrola to refinance UK renewables

Offshore wind farm. Photo by: Iberdrola (www.iberdrola.com).

November 17 (Renewables Now) - Iberdrola (BME:IBE) has issued EUR 1 billion (USD 1.18bn) worth of green hybrid bonds, seeking funds to refinance investment in renewable energy projects in the UK.

Bearing a fixed coupon of 1.875%, the bond was 3.3 times oversubscribed. It was issued on the Euromarket. According to the Spanish utility’s press statement on Tuesday, Iberdrola is the first Spanish company that issues a green hybrid bond and the second internationally.

The banks that assisted the issuance are Banco Bilbao Vizcaya Argentaria, Barclays plc (LON:BARC), BNP Paribas (EPA:BNP), Credit Agricole CIB, HSBC (LON:HSBA), ING Bank NV, JP Morgan (NYSE:JP), Mitsubishi UFJ Financial Group, Banco Santander (BME:SAN) and Unicredit Bank AG.

Iberdrola will have the rights to buy back the new bond at the offered rate within five and a half years. The hybrid bonds will be half-debt and half-capital, it said.

As part of its strategy to ensure that a large portion of its liabilities have “a green format”, in February Iberdrola announced a “green loan” deal amounting to EUR 500 million, the proceeds of which were allocated mainly for energy efficiency and renewable energy projects.

(EUR 1.0 = USD 1.181)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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