Iberdrola has raised $1.6 billion through its first direct U.S. debt market issuance since 2009. The green bond offering attracted more than $5 billion in investor demand and will finance or refinance eligible electricity network and renewable energy projects. The transaction diversifies the Spanish energy company’s funding sources as it plans substantial investment in the U.S. market.
Key Overview
- Total issuance: $1.6 billion.
- Investor demand: More than $5 billion.
- Bond structure: Two $800 million tranches.
- Annual coupons: 5.40% and 5.85%.
- Planned U.S. investment: $5 billion annually in the coming years.
Iberdrola Returns to the U.S. Debt Market
Spanish energy company Iberdrola has returned to the U.S. debt market with a $1.6 billion green bond issuance, marking its first direct debt transaction in the country since 2009.
The transaction establishes another financing channel in the world’s largest capital market, where the company’s American subsidiaries have continued raising funds. It also supports Iberdrola’s strategy of diversifying its funding sources and managing borrowing costs across different markets.
The offering attracted demand exceeding $5 billion, more than three times the amount issued. A total of 116 investors, predominantly American institutional investors, participated, including major financial institutions.
The strong demand highlights investor appetite for sustainable debt financing and reflects the appeal of bonds tied to eligible environmental projects.
Two Bond Tranches Offer Different Maturities
The issuance is divided into two equal tranches of $800 million each, offering investors different maturity dates and annual coupon rates.
The first tranche matures on 4 November 2029 and carries a fixed annual coupon of 5.40%. The second matures on 4 November 2033, with a fixed annual coupon of 5.85%.
The reported issue prices were 99.902% of nominal value for the first tranche and 99.994% for the second. Closing and disbursement are scheduled for November 4, 2026, subject to customary conditions.
Iberdrola said the final financing cost was comparable to what it could have secured in the Euromarket, with margins among the most attractive in the U.S. electricity sector.
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Proceeds to Support Electricity Networks and Renewables
The proceeds will finance or refinance eligible green projects under the company’s Green Financing Framework. The main investment areas include electricity network assets, particularly transmission infrastructure, and renewable energy installations across the United States.
These investments are important as electricity systems require additional infrastructure to accommodate renewable generation and growing demand. Transmission networks connect electricity generation to consumers, while renewable installations expand the supply of lower-carbon energy.
Iberdrola expects to invest approximately $5 billion annually in the United States in the coming years. The new issuance provides additional funding capacity to support that investment programme.
Through its U.S. subsidiary Avangrid, the company operates renewable energy assets across technologies including onshore and offshore wind, hydropower and solar. The financing therefore complements a broader presence in the American energy market.
Sustainable Finance Remains Central to Funding Strategy
The U.S. transaction builds on Iberdrola’s wider use of sustainable financing. In 2025, 99% of the financing signed during the year was sustainable, while its sustainable financing exceeded €66 billion by year-end.
The company also issued €1.5 billion in euro green bonds in June and placed a €600 million green hybrid in February.
By accessing dollar-denominated debt, Iberdrola can diversify its funding by currency and maturity while supporting long-term investment. The strong order book also demonstrates that environmental financing criteria can attract substantial institutional demand.
Outlook
Iberdrola’s $1.6 billion issuance strengthens its access to U.S. capital markets and provides funding for electricity transmission and renewable energy infrastructure. With demand exceeding $5 billion, the transaction attracted significantly more interest than the amount offered.
Its longer-term significance will depend on how effectively the proceeds support eligible projects, strengthen energy networks and advance renewable energy investment. The deal reinforces sustainable debt as an established component of Iberdrola’s financing strategy.
FAQs
1. How much did Iberdrola raise?
Iberdrola raised $1.6 billion through a U.S. green bond issuance.
2. What are the bond coupon rates?
The two tranches carry annual fixed coupons of 5.40% and 5.85%, maturing in 2029 and 2033, respectively.
3. How will the proceeds be used?
The proceeds will finance or refinance eligible green projects, mainly electricity transmission infrastructure and renewable energy facilities in the United States.
4. Why did Iberdrola return to the U.S. debt market?
The transaction diversifies its financing sources, supports its planned U.S. investment programme and provides access to institutional investors in the American market.
Sources: ESG Today; Iberdrola; renews.biz; Dealroom
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