Iberdrola and Banesto: an experiment in symbiosis

09 Jun 2008

Iberdrola, the Spanish utility, has set up a new MTN programme to issue structured notes — something very rare for a corporate issuer. Remarkably, it is outsourcing the treasury function for the programme to Banesto, one of its relationship banks. The initiative’s success is by no means certain, but if it works it could help reinvigorate the structured note market and take banking relationships in a new direction.

At first sight there appeared to be nothing unusual about Spanish utility Iberdrola’s new Eu1.5bn MTN shelf, signed on May 29.

But the facility is anything but another run-of-the-mill programme. The fact that Iberdrola will use it to issue structured notes makes it extremely rare among corporate MTN ...

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