Global energy and electricity provider Iberdrola announced today it has completed the issuance of a new €1 billion green bond. The offering met strong demand, despite the turmoil in the European corporate debt market caused by the ongoing war in Ukraine, which saw debt issuance effectively dry up over the past several weeks.

The offering was more than 3x oversubscribed, with demand exceeding €3 billion. With a ten-year maturity, the coupon was set at 1.375%. Iberdrola stated that the issue has been placed among 181 investors, mainly from Europe and the UK.

Iberdrola stated that the funds from this issue will be used to partially finance Iberdrola’s investments in renewable offshore wind installations in France at the offshore St. Brieuc wind farm, and in Germany at Baltic Eagle offshore wind farm.

The new offering follows Iberdrola’s announcement last year that it expects green and sustainable products to account for 63% of its debt by 2025, as part of its strategy for its financing infrastructure to have an increasingly higher percentage of green and sustainable products.

Iberdrola stated that a group of nine banks, including Bank of America, Citibank, BNP, HSBC, BBVA, Santander, Sumitomo, Intesa San Paolo, and ING participated in the placement.