Uría advises Iberdrola on its largest green hybrid bond issue for €2bn

Uría Menéndez has counselled Iberdrola on the completion of the largest green hybrid bond issue in its history, for €2 billion

Iberdrola launched the largest green hybrid bond issue in its history, amounting to €2 billion. The demand for and the terms of this operation, the group’s fourth of its kind, once again demonstrate the confidence that the market and investors have in the soundness and solvency of the energy company’s business and growth plans.

The operation has been structured in two tranches, both perpetual, but with a repurchase date: after 6 years for the first tranche and 9 years for the second. Subsequently, it can repurchase either of them annually, on the coupon payment date.

The amount of €2 billion coincides with the needs established for 2021 for this type of financing by the Iberdrola investor plan. So, in just one month, the group will have already met its target in this regard for the current financial year, allowing Iberdrola to continue to maintain its excellent financial health. In addition, hybrid bonds count as 50% capital according to the methodology used by the main rating agencies, so that this operation also contributes to maintaining the group’s credit ratings.

Uría Menéndez advised Iberdrola on Iberdrola International B.V.’s issuance of the aggregate principal amount of €2 billion of Non-Call Undated Deeply Subordinated Reset Rate Guaranteed Securities, guaranteed on a subordinated basis by Iberdrola, S.A. and admitted to trading on the Euro MTF of Luxembourg.

Uría Menéndez´s team was led, on Debt Capital Markets matters, by Madrid office M&A-Corporate partner Rafael Sebastián (pictured top left), along with associate Javier Montañés (pictured bottom left), and on Tax matters by partner Rafael García Llaneza (pictured top right) and associate Diego Andradas (pictured bottom right).