For the second time in two years, Iberdrola successfully raised funds from green bonds, with the aim of refinancing onshore wind energy projects, located across Portugal, Spain and the United Kingdom.
Iberdrola; Spain’s top electric utility, has succeeded in raising a total of €1 billion through the issuance of green bonds. Investors showed an overwhelming response to the bonds, as they offered investments four times greater than the issue size. Bonds were offered for a period of ten years, at a coupon rate of 1.125%. This rate ranks among the lowest issued for bonds by the company, enabling significant savings.
Vigeo Eiris, the recently merged global environmental, social and governance research agencies from France and the United Kingdom, verified the bond. They also provided details of the 24 wind energy projects, selected to be refinanced. Iberdrola has been ranked highly by Vigeo Eiris, based on social, environmental and governance factors. Vigeo Eiris focus predominantly on quantitative over performance-based reporting; concentrating on thermal carbon factors and the results of energy demand.
Vigeo Eiris have taken into account the fact that there has been a drop in the intensity of emission from the Group’s thermal plants over the course of the past three years, nevertheless felt a strong ranking was justified, based on the company’s environmental contributions and performance.
In 2014, Iberdrola raised a total of €750 million through the issuance of green bonds, at a coupon rate of 2.5%. The capital was then reinvested into existing renewable energy projects, including transmission and smart grid.
With a track record stretching back 150 years, Iberdrola is today Spain’s number one energy group due to a long-term business model based on geographical diversification, a focus on regulated activities, a focus on the quality of its assets, efficiency and financial strength. It produces and supplies electricity – in a clean, reliable and responsible manner – primarily to the United Kingdom, the United States, Mexico, Brazil and Spain, driving their economic and social development.