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)