Iberdrola is placing a new perpetual green hybrid bond this Thursday, according to the agency Bloomberg. While waiting for the operation to be completed, the coupon would initially be located in a range between 4.625% and 4.75%. The bond has a repayment window after 5 years. The placement banks are BNP Paribas, Bank of America, Commerzbank, HSBC, JP Morgan, Natixis, Santander, SMBC and UniCredit (B&D).
Paul Vickars, senior credit analyst at Bloomberg Intelligenceplaces the size of the issue at 800 million euros, since it will probably refinance another hybrid at 3.25%. Vickars also points out that this initial range of the coupon (4.625%-4.75%) implies a premium of at least 40 basis points against the reference, and he senses that this differential could narrow, heading to the lower part of the range.
This placement occurs only a few days after the utility carry out a green bond issue of 750 million Australian dollars – nearly 460 million euros -, becoming the first non-financial Spanish company to carry out an issue in this market. Demand reached 2.1 billion, which implies an oversubscription of 2.80 times. Thanks to the strong interest of investors, the weighted average cost of the operation was set below 5.65%.
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. In addition to the operations carried out in the Euromarket (in January, July and September), Iberdrola has become the only utility 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.
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