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Global energy and electricity provider Iberdrola announced that it has raised €400 million in a […]]
Iberdrola Issues Green Bond Linked to its Share Price – ESG Today
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Iberdrola Issues Green Bond Linked to its Share Price
Mark Segal
March 24, 2025
Global energy and electricity provider Iberdrola announced that it has raised €400 million in a new green bond offering, with the bonds linked to the company’s share price, enabling investors to benefit from the performance of its shares.
The new 5-year bonds are indexed to Iberdrola’s share price through the incorporation of a call option, with investors able to exercise in the three months prior to maturity. Iberdrola said that in order to avoid dilution for its current shareholders, the option will be exercisable by payment of the difference, with the company planning to acquire a hedging option identical to the one sold within the bond. The company added that the combination of the share-linked bond and the option purchase offers cost advantages over traditional financing while eliminating risk. The coupon on the bond was set at 1.5%.
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, estimated to account for nearly two-thirds of its debt by 2025. In 2024, 94% of the financing signed by the company was sustainable, with the group’s sustainable financing as of the end of 2024 exceeding €60 billion, including €22.9 billion of green bonds, €15.6 billion sustainable credit lines, and €6 billion sustainable commercial paper, in addition to green and sustainable bank loans, and green structured finance and multilateral loans.
Iberdrola announced plans last year for a major electrification-focused investment program, pledging to allocate €41 billion in its network and renewable energy from 2024 through 2026, with approximately 60% allocated to network-based growth including distribution and transmission, and with more than 40% of the investment anticipated to be allocated to the U.S.
Mark founded ESG Today following a 20 year career in investment management and research. Prior to founding ESG Today, Mark worked at Delaney Capital Management (DCM) in Toronto, Canada, most recently as the firm’s head of U.S. equities. While at DCM, Mark was part of the firm’s ESG team, responsible for evaluating and tracking the sustainability factors impacting portfolio companies, and assessing the suitability of companies for portfolio inclusion. Mark also spent several years in the sell-side research industry, covering the technology and services sectors. Mark holds an MBA from Columbia University in New York, a BBA from the Schulich School of Business at York University in Toronto, and is a CFA charterholder.
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Sustainable Finance
Iberdrola Issues Green Bond Linked to its Share Price
JLL Acquires Clean Energy-Focused Investment Bank Javelin Capital
EU Platform on Sustainable Finance Proposes New Standard to Help SMEs Access Financing for Sustainability Efforts
Nordea Signs 68,000 Tonne Carbon Removal Agreement
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