Iberdrola Issues $1.6 Billion in Green Bonds for US Grids and Renewables

Spanish energy company Iberdrola has issued $1.6 billion in green bonds in the United States to finance and refinance electricity transmission infrastructure and renewable energy projects. Announced on 27 October 2026, the transaction marks Iberdrola's first direct corporate bond issuance in the US market since 2009 and establishes an additional financing channel for its American operations. The company expects to invest approximately $5 billion annually in the United States over the coming years, with electricity networks and renewable generation among its priorities.

 

The issuance attracted more than $5 billion in investor demand, more than three times. A total of 116 institutional investors participated, predominantly from the United States, including several major financial institutions. Iberdrola said the green designation boosted investor interest, reflecting continued institutional appetite for debt instruments that support eligible clean energy and electricity infrastructure investments. The transaction also allows the company to diversify its funding sources beyond European capital markets.

 

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The bonds were issued in two equal tranches of $800 million. The first carries a fixed annual coupon of 5.40% and matures on 4 November 2029, while the second offers a 5.85% coupon and matures on 4 November 2033. According to Iberdrola, the financing costs were comparable to those available through a similar issuance in the European bond market, with pricing terms that the company described as among the most competitive for the US electricity sector.

 

Proceeds will be allocated to eligible electricity network assets, particularly transmission infrastructure, and renewable energy facilities in the United States. Investment in transmission networks is increasingly important as electricity systems accommodate additional renewable generation and rising power demand. Expanding and modernizing grid infrastructure can connect new electricity sources, improve network reliability, and support electrification. However, Iberdrola has not identified the individual projects receiving proceeds or disclosed expected emissions reductions associated with the issuance.

 

The transaction reinforces Iberdrola's strategy of using sustainable finance to support long-term energy infrastructure investment while expanding its access to international capital markets. Its strong investor demand demonstrates institutional interest in financing electricity networks and renewable assets. Environmental outcomes will depend on how the proceeds are allocated and on the performance of the projects financed or refinanced through the bonds.

 

Source: Iberdrola