Iberdrola has completed a €5bn ($5.8bn) capital raise, aimed at supporting its electricity grid investments across the US and UK.
As reported by Reuters, 331 million new shares were issued through an accelerated bookbuilding process, with the order book 3.8 times oversubscribed.
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The share offering was priced at €15.15 each, marking the largest accelerated bookbuild in Spain since Santander’s €7.5bn raise in 2015.
This strategic move by Iberdrola will leverage what it describes as “unprecedented investment opportunities” within network businesses.
The new capital will support a €55bn investment opportunity in grids between 2026 and 2031 – a 75% increase from the previous six-year investment period.
The company seeks to focus on regions with stable and predictable regulatory environments and attractive returns.
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By GlobalDataThis capital injection forms part of a wider financing strategy that includes cash generation, accessing debt markets, rotating assets and forming partnerships — due to be elaborated during Iberdrola’s Capital Markets Day on 24 September 2025.
In its financial update for the first half of 2025, the company announced a net profit of €3.56bn, reflecting a 20% increase on a like-for-like basis.
Its gross operating profit (earnings before interest, taxation, depreciation and amortisation, or EBITDA) increased by 5% year-on-year, reaching €8.29bn. While EBITDA in Spain experienced a 12% decline, this was outweighed by growth in the US and Europe.
Investments made during H1 2025 amounted to €5.66bn — a 7% increase — with more than 60% allocated towards projects in the US and UK.
In its full-year projections for 2025, Iberdrola anticipates a double-digit rise in net profit. It expects “no impact on results from the new tariffs, which would have a cost impact on investment of less than 1%, thanks to supply chain management”.
