Iberdrola Equity Raise: Implications for Credit, Spreads (video)
Iberdrola's €5 billion equity raise pre-funds a substantial proportion of the incremental spending associated with an unprecedented, €55 billion investment opportunity in networks through 2031. Financial headroom above the requirements for its BBB+/Baa1 ratings will open up in 2025 then only steadily erode as spending ramps-up, which should help to maintain credit stability under a fully-funded plan focused on regulated networks. Iberdrola's bonds may hold their relatively tight levels to peers with higher risk growth profiles, though its hybrids retain tightening scope as extension risk looks minimal.