Behind Iberdrola’s Landmark £500m 12-Year Green Bonds Deal
With renewable energy demand continually growing, as is investment in the space.
Spanish utility Iberdrola has long secured its position as a world leader in renewable energy sources, with 44,148MW of renewables in operation as of the end of September 2024.
Continuing this commitment, it has made yet a significant move for the energy sector by successfully closing its largest green bond issue in sterling for 15 years.
Worth £500m (US$649.4m), the 12-year green bonds are a clear demonstration of investor support and reinforces the company’s commitment to sustainable energy initiatives.
Iberdrola: A renewable energy powerhouse
This news comes after Iberdrola said it is doubling its UK investment via its subsidiary, ScottishPower by 2028.
The latest news from the Spanish energy giant marks Iberdrola's first sterling-denominated bond since 2019 and its largest in the British market since 2009.
Overwhelming demand attracted more than 140 investors — the highest number for a corporate issuer in the sterling market this year.
The issuing of these green bonds is part of Iberdrola’s broader strategy to diversify its financing sources and support its ambitious renewable energy projects.
The funds raised will be directed towards future investments in the UK’s renewables sector, aligning with the company's commitment to driving the transition to clean energy.
Iberdrola’s Executive Chairman Ignacio Galán, who has previously declared that Iberdrola can “supply the clean electricity the world needs”, says: “We have been saying for a long time that the 21st century will be the century of electricity, just as the 20th century was of oil and the 19th century of coal.
“It fills us with satisfaction that the International Energy Agency (IEA) has joined our thesis and also says that we entering the century of electricity.”
Iberdrola’s financial strategy — and its movements as a result — is closely tied to its ambitious investment plan.
The company aims to drive the electrification of the economy, with a strong focus on expanding electricity grids and renewable energy capacity.
This green bond issue, the company believes, provides crucial funding to accelerate these initiatives and maintain Iberdrola's position as a leader in the energy transition.
Iberdrola’s renewable energy prowess in the UK
Iberdrola is the Uk’s second-largest electricity network operator.
The main source of Iberdrola’s strength when it comes to renewables in the UK comes through its subsidiary, ScottishPower.
ScottishPower is the UK’s first 100% renewable energy company. Its focus on wind power, smart grids and the transition to a cleaner, electric future helps establish this dominance. The first integrated energy company in the UK to produce 100% green electricity, it boasts more than 3,000MW of installed capacity in the form of offshore and onshore wind.
Iberdrola’s largest wind farm to date — and one of the largest of its kind in the world — is East Anglia ONE, an offshore wind farm in the North Sea.
The £2.5bn (US$3.2bn) project is a joint venture between ScottishPower Renewables and Macquarie’s Green Investment Group (GIG) and is the first of four offshore wind farms.
The company has also secured contracts for other major offshore wind projects, including East Anglia TWO and THREE, which will provide more than 1,000MW of clean electricity.
“The ambition of the East Anglia THREE project is a further demonstration of Iberdrola’s commitment to decarbonisation and energy security around the world, through large-scale renewable infrastructures capable of generating economic activity and creating thousands of jobs,” Ignacio adds.
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