Iberdrola has issued a €400 million green bond linked to its share price, with a five-year maturity and a 1.5% coupon. This structured bond allows investors to benefit from the company’s stock performance by offering a call option on Iberdrola shares during the last three months before maturity.
However, Iberdrola will not issue or deliver any shares, ensuring no erosion of the equity of existing shareholders. To insure itself against potential risks resulting from an increase in the share price, Iberdrola will purchase a matching option, reducing risk and providing cost advantages compared to traditional financing.
The pricing level of this hedge will be determined in the coming days. The transaction was executed in collaboration with four major international banks: JPMorgan, Natixis, Mezzo, and Morgan Stanley.
This is not the first time Iberdrola has entered the structured bond market linked to its equity. It previously issued a similar green bond worth €450 million in 2022, entered the market in 2015 with a €500 million deal, and then increased this amount by €200 million in 2020.
Source: Iberdrola
