Spanish companies continue to take advantage of the return of summer to go to the markets in search of financing. At the beginning of the week, Banco Santander and Iberdrola were the companies that launched new debts, in an environment of less volatility and after the recent cuts in interest rates. Together, they raised more than 5 billion euros in a single day. But for Iberdrola, it is not just any day. Electricity company closes largest bond issue senior of its history.
Iberdrola, which is trading at its highest level on the stock market, launched a debt issue on Monday senior with which raised 2.150 million euros across three different maturity sections. It placed 650 million in 3.5-year securities; 750 million in 7-year securities; and an additional 750 million in 11-year securities. This is the largest bond issue senior which closes the company in its entire history, after having enjoyed great support from investors. It has registered applications for 7.4 billion, more than triple what was issued (it was subscribed 3.4 times).
The weighted average cost of the operation was set below 3.12%: will pay a coupon of 2.625% for the debt maturing in March 2028; 3% for the one that expires in September 2031; and 3.375% for which it is valid until September 2035. The objective of this operation is to continue its growth in the United Kingdom. The electricity company chaired by Ignacio Galán agreed in August to acquire ENW, for a total value of 5 billion euros, including debt, making the United Kingdom the company’s largest country in terms of network asset base.
This show is the fifth that the company has closed on the market so far this yearafter the hybrid bond of 700 million euros issued in January, the placement on the Swiss market of 335 million francs in June, the senior bond of 750 million issued in July and that carried out in August, when Iberdrola placed 525 million dollars (490 million euros) via the American subsidiary.
The investment banks on Monday were: BBVA, BNP Paribas, Crédit Agricole, Mizuho, Sabadell, Barclays, CaixaBank, DBS, Banca IMI, ING, Morgan Stanley, MUFG, NatWest, Rabobank, RBC and Santander.
Return of activity
For his part, Santander issued debt on Monday senior non-preferential for a total of 3 billionalso dividing the investment into tranches, in his case into two: 2,000 million at 4.5 years and 1,000 million at 8 years. For the former, they will pay an annual coupon of 3.25%, while the latter closed at 3.5%. In this operation, the subscribers were Santander itself, BMO, Commerzbank, IMI, Natixis, ING and SEB.
Both companies join the problems already seen in the Spanish market during these first weeks of vacation. This year, in addition, this return has been brought forward, and already in the last half of August there has been a window of emissions with a greater volume than usual, in general, in Europe. The first Spanish issuers to resume their activities have been large companies such as Repsol, BBVA or Telefónica, during this month of August, followed in September by others such as CaixaBank, which issued a social bond two weeks ago.
