Yesterday Iberdrola placed 700 million euros in hybrid bonds for which it will pay a coupon of 4.871%, according to the information that the company sent to the market.
An operation that was very attractive for investors since the demand exceeded 3.4 billion euros, which is more than 4.8 times the supply. More than 200 international investors, mainly European and British, bid to obtain debt from the Spanish electricity company, which offered a perpetual bond, but with a repurchase option after seven years. This strong demand allowed it to lower the interest rate, which places it, according to the company itself in its statement, in “the most competitive hybrid bond operation in the last 12 months.”
This operation will serve to refinance the 700 million issued in 2018, the repurchase of which will take place soon, thus maintaining the company's hybrid volume stable at an amount of 8,250 million euros.
Iberdrola claims to have waited until 2024 to launch this operation in order to take advantage of the better market context, with less pressure from interest rates and less volatility.
