Iberdrola has issued green bonds of 750 million Australian dollars – nearly 460 million euros. It is the first non-financial Spanish company to carry out an issue in this market known as ‘kanguroo’. The issue has been carried out in two tranches: 350 million Australian dollars (215 million euros) for six years and 400 million Australian dollars (245 million euros) for 10 years. Demand reached 2.1 billion as a whole, which implies an oversubscription of 2.80 times. Thanks to the strong interest of investors, the weighted average cost of the operation has been set below 5.65%, for an average life of more than 7 years. This issue occurs shortly after the one carried out by Iberdrola in another foreign market at the end of October, when it carried out the largest issuance of green bonds in pounds in its history.
The placement has captured the interest of more than 80 investors with a long-term vision, among whom, in addition to Australians, Asian investors have stood out, according to the utilities in a note to the media. They especially predominate investors committed to ESG (investment based on environmental, social and governance criteria), thanks to the green nature of the operation, which will finance future investments in the country in the renewable business. Visit elEconomista ESG, the green portal of elEconomista.es.
In addition to the operations carried out in the Euromarket (in January, July and September), Iberdrola becomes the only utilities European company to have carried out operations during 2024 in the Swiss (June), British (October) and Australian (November) markets, along with a private placement in Norwegian crowns in September.
The Australian operation occurs a month after the presentation of the results for the first nine months of the year, in which Iberdrola presented a net profit of 5,471 million euros and in which it set its net profit growth at 14% -without taking into account extraordinary events- for the whole year. The banks that participated in the placement were Deutsche Bank, Mizuho, ANZ, Sumitomo and Bank of Tokyo-Mitsubishi.
The broadcast closed this Tuesday means the seventh public operation on the market so far in 2024. The first was the 700 million euro hybrid bond issued in January; the second, on the Swiss market for 335 million francs at the end of June; the third, the senior bond for an amount of 750 million euros issued in July; The fourth took place in August, when Iberdrola placed 525 million dollars (490 million euros) through the US subsidiary; the fifth took place on September 23, when it placed 2,150 million euros in the largest senior debt issue in its history, and the sixth, just a month ago, when the company closed the aforementioned first green bond in pounds in the last 15 years for an amount of 500 million (595 million euros) with strong support from investors.
A few days ago, the electricity company signed a loan of 120 million with the European Investment Bank (EIB) for the development of energy innovation projects. It has also expanded its alliance with the World Bank with a green loan of 300 million for renewable projects in emerging countries. In addition, it has signed a green syndicated loan for an amount of 500 million euros with the coverage of Cesce together with ICO, Sabadell and HSBC, and in the first quarter of 2024 it signed another green loan for 700 million euros with the European Investment Bank. for the expansion of electrical networks in Spain. At the end of December 2023, the company signed its largest credit line in history for 5.3 billion euros with 33 international banking entities. The cost of this operation was at the most competitive levels for Iberdrola, with prices similar to those of 2019 and the operation was oversubscribed by more than 40%. This financial strategy complements the historic investment plan launched by the company in March 2024. This roadmap, whose execution takes a year in advance, aims to promote the electrification of the economy, with a strong boost to networks electricity and renewables.
#Iberdrola #closes #issuance #green #bonds #Spanish #company #Australia #million
