Iberdrola : raises €700 million in successful third green bond placement

The first Spanish company to enter green bond market more than two years ago now

• The bond issuance matures in 9 years with a coupon payment of 0.375%, the lowest obtained by Iberdrola
• Proceedings, validated by independent agency Vigeo Eiris, are earmarked for refinancing onshore wind investments in the United Kingdom : The issuance was mainly placed among socially responsible investors

Iberdrola successfully placed a green bond issuance with proceeds earmarked to refinance onshore wind farms in the United Kingdom.

Maturity of the €700 million notes is nine years, ending September 2025. Differential rate came at 32 basis points over mid-swap, with a coupon payment of 0.375%, the lowest obtained by the company in euro-denominated debt transactions.

The issuance price was very competitive in an environment of low interest rates and debt costs, increased investor appetite for green fixed securities and the ECB debt bying programme. In addition, final cost stood at 35 bp below the price of Spanish Treasury bonds for the same maturity.

The bond was twice oversubscribed amid high investor demand driven by socially responsible investors (SRI). In fact over 50% of the placement was subscribed by this type of investors, thereby enabling Iberdrola to diversify its investor base at costs similar to those of a traditional bond.

One of the main features of green bonds is that the funds obtained are used to finance sustainable and socially responsible projects under the certification of an independent validating agency, Vigeo Eiris.

Today's issuance is the third green bond placement by Iberdrola, enhancing its green bond profile and building up on the success attained in April 2014 when it became the first Spanish company to enter the green bond market, as well as in April 2016.

About Vigeo Eiris

Vigeo Eiris was founded in 2002 and have established themselves as Europe's leading experts in assessing practices and behaviours of companies and public corporations in the areas of environment, social responsibility and good governance.

The agency evaluates the commitment of companies and public corporations in meeting environmental, social and corporate governance objectives which are considered to be both risk factors and business opportunities when defining and developing corporate strategy.

In a release on Iberdrola, Vigeo Eiris highlighted that the Group meets all international requirements in terms of sustainable development and that it is positioned among the top-rated corporations assessed by Vigeo within the utilities industry.

Also, Vigeo Eiris stressed that Iberdrola's excellent environmental and human resources management are one of the company´s greatest strengths.