Iberdrola raises CHF 335m in first Swiss franc green bond sale

Spanish utility Iberdrola SA (BME:IBE) has issued its first ever green bond in Switzerland, raising CHF 335 million (USD 373.4m/EUR 349m) to diversify its sources of financing.

The proceeds will be used for green projects as defined by Iberdrola’s green financing framework.

Iberdrola touted high investor demand, which allowed it to secure lower interest rates than initially anticipated.

The bond was divided into two tranches: a four-year tranche for CHF 145 million with an interest rate of 1.38%, and a seven-year tranche for CHF 190 million with a rate of 1.56%. This translates to an average of 3.5% across both tranches converted to euros, Iberdrola said.

UBS and Deutsche Bank acted as the coordinating banks for the issuance.

This was Iberdrola’s first bond sale in Swiss francs since 2012 and the first involving green bonds on that market. The company said it took advantage of the key policy rate cut by the Swiss National Bank in June, which improved the rate levels obtained compared to an equivalent operation on the Euromarket.

(CHF 1.0 = USD 1.115/EUR 1.042)

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