Iberdrola electrifies hybrid market with €3bn trade as jumbo hybrids in vogue

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By Mike Turner
21 Oct 2020

Iberdrola, the Spanish energy utility, launched a €3bn dual tranche hybrid capital bond on Wednesday, as syndicate bankers say the hunt for yield is encouraging issuers to push boundaries on the amounts they raise in hybrid issues.

Iberdrola, rated Baa1/BBB+/A- but printing hybrid debt at Baa3/BBB-/BBB, opened books on a perpetual non-call 5.5 year (April 2026) note at 2.25% to 2.375% and perpetual non-call 8.5 year (April 2029) at 2.625%-2.75%.

At these levels, demand hit €6.5bn combined, with a slight skew to the shorter maturity.

“That is ...

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