ScottishPower’s Basque parent company Iberdrola said it sold an €800 million hybrid green bond in the Euromarket, as reported to the National Securities Market Commission (CNMV).
The €800 million hybrid green bond is Iberdrola’s eighth public market operation so far in 2024, raising €6.6 billion.
“The bond issued is perpetual but has a par call option in August 2030,” said Bilbao-based Iberdrola.
“The coupon has been set at 4.25%, making it Iberdrola’s most competitive hybrid operation in the last 3 years.
“Demand reached more than €3 billion, 3.75 times oversubscribed, and consists of more than 200 international investors, mainly from Europe and the United Kingdom.
“Supported by strong demand, the coupon obtained is competitive with a new issuance premium close to zero despite a market environment influenced by geopolitical instability.”
Iberdrola’s other 2024 transactions include:
- A €700 million hybrid bond sold in January
- A bond valued at 335 million Swiss francs that was issued in June
- A €750 million senior bond sold in July
- A $525 million bond sold in August through a US subsidiary
- A €2.15 billion issue on September 23, the largest issuance of senior debt in the firm’s history
- The group’s first green bond sold in Sterling for 15 years in October totalling £500 million
- Earlier in November, a green debt issue for 750 million Australian dollars (€460 million)
Iberdrola said proceeds from the new €800 million hybrid green bond will be used to refinance the renewable assets allocated to the 2019 hybrid that is being replaced.
“The call back will take place soon, thus keeping the company’s hybrids stack stable at 8.25 billion euros,” said the firm.
“The company has taken advantage of the improvement in both interest rates and credit spreads. Iberdrola’s flexibility to refinance this transaction has contributed to its success.
“The hybrid bonds count as 50% capital, in accordance with the methodology of the main rating agencies, so this operation contributes to maintaining the group’s credit ratings. The last issuance of this type of debt by Iberdrola dated from January 2023 with a coupon of 4.87%.”
Nine banks participated in the placement: BNP, Unicredit, JP Morgan, HSBC, Bank of America, Santander, Natixis, SMBC and Commerzbank.