Iberdrola has issued green bonds for an amount of 750 million Australian dollars, or nearly 460 million euros. It is the first Spanish non-financial company to carry out an issue in this market known as “kangaroo”. The issue was carried out in two tranches: 350 million Australian dollars (215 million euros) over six years and 400 million Australian dollars (245 million euros) over 10 years. Demand reached 2.1 billion in total, implying an oversubscription of 2.80 times. Thanks to strong investor interest, the weighted average cost of the operation was set below 5.65%, for an average lifespan of more than 7 years. This issuance comes shortly after Iberdrola’s in another overseas market at the end of October, when it made the largest sterling green bond issue in its history.
The placement attracted the interest of more than 80 investors with a long-term vision, among whom, in addition to the Australians, Asian investors stood out, according to the utilities in a note to the media. They particularly predominate investors committed to ESG (investment based on environmental, social and governance criteria), thanks to the green nature of the operation, which will finance the country’s future investments in the renewable energy sector. Visit elEconomista ESG, the green portal of elEconomista.es.
In addition to the operations carried out on the Euromarché (in January, July and September), Iberdrola becomes the only utilities European company which will have carried out operations on the Swiss (June), British (October) and Australian (November) markets during 2024, as well as a private placement in Norwegian crowns in September.
The Australian operation comes a month after the presentation of the results of the first nine months of the year, in which Iberdrola presented a net profit of 5,471 million euros and set the growth of its net profit at 14% – without take into account extraordinary elements. events- for the whole year. The banks participating in the placement were Deutsche Bank, Mizuho, ANZ, Sumitomo and Bank of Tokyo-Mitsubishi.
The broadcast ending this Tuesday means the seventh public transaction on the market to date in 2024. The first was the €700 million 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 amounting to 750 million euros issued in July; The fourth took place in August, when Iberdrola placed 525 million dollars (490 million euros) through its American 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 first aforementioned sterling green bond over the last 15 years in the amount of 500 million (595 million euros) with strong investor support.
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 also expanded its alliance with the World Bank with a green loan of 300 million for renewable projects in emerging countries. In addition, it signed a green syndicated loan in the amount of 500 million euros with the coverage of Cesce with ICO, Sabadell and HSBC, and in the first quarter of 2024 it signed another green loan of 700 million euros with the European Investment Agency. Bank for the expansion of electricity 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 strong impetus on electricity networks and renewable energies.
