Iberdrola Becomes First Company to Issue Green Bond Under Both EU and ICMA Standards

Iberdrola has become the first company in the world to issue a green bond that complies with both the European Union Green Bond Standard (EU GBS) and the International Capital Market Association (ICMA)’s Green Bond Principles.

The Spanish utility successfully raised EUR 750 million through a 10-year bond, setting a major precedent in sustainable finance. This is also the first bond under the EU’s new framework issued by a Spanish company, signaling Iberdrola’s leadership in aligning investment practices with climate goals.

The offering was met with overwhelming investor demand, more than EUR 3.7 billion, five times the amount placed, making it the largest book for a senior Iberdrola transaction since 2021. This high appetite enabled Iberdrola to price the bond competitively with a 3.5 percent coupon and a 110 basis point credit spread over the reference midswap rate, resulting in a negative issue premium, a rare feat in today's market environment.

The proceeds from the bond will fund a range of renewable energy projects, both operational and under construction, across Iberdrola’s portfolio. With this green bond issue, the company continues to reinforce its status as a frontrunner in sustainable energy financing, as well as its strategic focus on decarbonization and energy transition.

More than 170 investors participated in the offering, with 93 percent being sustainable investors. The geographical distribution was also broad-based, led by the UK (32 percent), France (28 percent), Germany (11 percent), Benelux (10 percent), and Spain (9 percent), showing wide European support. This marks Iberdrola’s second major public green bond issuance in 2025, following a EUR 400 million equity-linked bond earlier this year, priced with a 1.5 percent coupon over five years.

With this transaction, Iberdrola further strengthens its already robust liquidity position of EUR 20.9 billion as of March-end. The company continues to exhibit a strong balance sheet and financial resilience, with funds from operations (FFO) rising 11 percent to EUR 3.5 billion in Q1, and a healthy cash flow to net debt ratio of 22.3 percent.

This green bond issuance not only deepens Iberdrola’s commitment to ESG investing but also sets a new global benchmark for companies aiming to align with the highest sustainability standards in capital markets.