This Thursday Iberdrola placed a green bond for 500 million pounds sterling (about 600 million euros)as stated Bloomberg. It is a 12-year issue that has received a demand of 2,000 million pounds (in euros, about 2,400 million). This interest on the part of investors has allowed the company to lower the cost of the issue, whose cost has gone from initially being in a range of 120-125 basis points above the reference interest rate, to remaining at a differential of 95-100 points. basics. The placement banks have been Barclays, HSBC, Goldman Sachs and NatWest.
The utility Last July, it also issued 750 million euros over 10 years at 3.625%, in what was its cheapest placement of the year. The company then received a demand for five times more, for 3.8 billion. This investment appetite allowed it to narrow the spread paid to 82 basis points over the midswap (reference interest rate), from the 120 points from which it started. The company has not achieved such a large narrowing (38 basis points) in a senior debt issuance since 2020.
Iberdrola is the reference issuer of sustainable debt in Spainin addition to having been a pioneer in this type of placements globally. In 2023 it was the second most relevant private issuer, with 1,850 million euros, only surpassed by Telefónica, with 2,600, according to data from Ofiso, the Spanish Observatory for Sustainable Financing. According to the same source, the Spanish sustainable debt market grew, surprisingly, by 36% in the first half of 2024 compared to the same period last year, while the global market fell by 15%, and issues related to projects stood out especially. sustainable mobility and energy efficiency. In the first half of 2024, Telefónica and Adif were the two largest issuers in Spain.
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