Iberdrola Raises €750 Million in Landmark European Green Bond Offering
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Global energy leader Iberdrola has secured €750 million in its first green bond issued under the new European Green Bond (EuGB) Standard, marking a milestone as the first Spanish company to do so. The bond also adheres to the International Capital Market Association’s Green Bond Principles, setting a dual-compliance precedent.
Investor appetite was strong, with demand hitting €3.7 billion—five times oversubscribed—and participation from over 170 institutional buyers. This marks Iberdrola’s highest investor demand for a senior deal since 2021.
The EuGB Standard, adopted by the EU in 2023 and effective from December 2024, aims to combat greenwashing by requiring proceeds to align with the EU Taxonomy. Up to 15% can fund taxonomy-eligible activities in sectors lacking formal criteria, provided issuers disclose allocations. Issuers must also publish detailed use-of-proceeds reports and green transition plans.
Iberdrola, a top global green bond issuer, will direct the funds to renewable energy projects, including operational and under-construction assets. The company has aggressively shifted toward sustainable finance, with 94% of its 2024 financing meeting green or ESG criteria. Its total sustainable financing now amounts to over €60 billion, of which €22.9 billion comes from green bonds and €15.6 billion from sustainable credit lines.
By 2025, Iberdrola expects nearly two-thirds of its debt to be green or sustainable, reinforcing its commitment to renewables, energy efficiency, and clean transportation. This latest offering underscores its role in advancing Europe’s sustainable finance market.
Source: esgtoday.com
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