The issue was placed in record time with offers received for around £700 million
The purpose of the offering is to diversify funding markets and maximize the Company’s solvency
IBERDROLA has today placed a £500 million pounds sterling, 15-year bond issue in the UK market, to be used to help meet the company’s financing needs.
The issue, aimed at investors operating in sterling markets, was placed among 54 investors, having received offers for close to £700 million, reflecting strong investor interest and the company’s capacity to raise funds in adverse conditions.
Conditions were among the best in recent times for a company with a rating similar to IBERDROLA’s, with a spread of 290 basis points. Lead managers were HSBC, Lloyds and RBS.
The offering boosts the Company’s financial strength and diversifies its sources of funding, following previous bond issues in Europe and Mexico within the past 12 months. On January 12, it placed a €1 billion two-tranche issue over three and seven years.
The latest placement helps IBERDROLA optimize its liquidity levels for 2009 and adapt to future financing needs.