Iberdrola has become the first company globally to issue a green bond compliant with the European Union’s new Green Bond Standard and the Green Bond Principles set by the International Capital Market Association. The 10-year deal raised €750 million ($810 million), drawing strong investor demand.

The Spanish utility said on Wednesday that the bond attracted orders exceeding €3.7 billion, more than five times the amount placed, allowing it to set a 3.5 percent coupon and achieve a final credit spread of 110 basis points over the 10-year mid-swap rate.

The deal marks a milestone in sustainable finance. It represents the largest investor book for an Iberdrola senior transaction since 2021 and highlights the growing appetite for high-integrity green instruments.

Around 93 percent of the more than 170 participating investors were classified as sustainable.

Proceeds from the issue will support Iberdrola’s renewable energy projects, including both operational assets and those under construction.

The company said the bond was priced at a negative new issue premium, making it the most cost-effective deal since the introduction of US tariffs under the Trump administration.

Strong European Demand for Green Debt

Geographically, the UK constituted 32 percent of the placement, France 28 percent, Germany 11 percent, Benelux 10 percent and Spain 9 percent, with the remainder spread across other European markets.

Bank of China, BBVA, CIC, Crédit Agricole, Deutsche Bank, HSBC, MUFG and UniCredit acted as joint bookrunners on the transaction.

The green bond is Iberdrola’s second public market operation this year, following a €400 million equity-linked green bond in March.

The company ended the first quarter with €20.9 billion in liquidity, supported by a strong operational performance that lifted funds from operations by 11 percent year-on-year to over €3.5 billion.

After consolidating UK-based electricity distributor Electricity North West, Iberdrola maintained a cash flow to net debt ratio of 22.3 percent in the first quarter, underscoring its financial resilience.

The company said the deal reaffirms Iberdrola’s strategy of combining global expansion with a robust balance sheet.

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