Spanish multinational energy company Iberdrola announced that it has raised $1.6 billion in a green bond issuance in the U.S., with proceeds to be used to finance U.S. electricity network asset investments, including transmission and renewable energy facilities.
The offering marks a return for Iberdrola to the U.S. debt market, as the company’s first direct issuance in the U.S. since 2009. Iberdrola said that its decision to re-enter the U.S. market opens a new financing channel for the company, allowing it to expand and diversify its sources of financing.
Iberdrola is one of the largest corporate issuers of green bonds, using the instruments to fund projects including renewable energy, energy efficiency, clean transportation and waste management. The company announced plans in 2021 for its financing structure to have an increasingly higher percentage of green and sustainable products. In 2025, 99% of the financing signed by the company was sustainable, with the group’s sustainable financing as of the end of 2025 exceeding €66 billion.
The new issuance included two $800 million tranches, including a 3-year bond maturing in November 2029 with a 5.40% coupon, and a 7-year bond with a 5.85% coupon. Iberdrola said that the final cost was comparable to what it could have obtained in the Euromarket.
The offering was more than 3x oversubscribed, drawing an order book of more than $5 billion, with Iberdrola attributing strong demand to the green nature of the bonds.
Proceeds from the issuance will be used to finance or refinance electricity network assets, mainly transmission and renewable facilities in the U.S. where Iberdrola said it expects annual investments of $5 billion in the coming years.
