Iberdrola's Avangrid raises $650M in bonds to fund US grid push
What's the deal? IberdrolaDealroom has a profile for this one. Try Dealroom → has completed US$420.6M (€564 million) bond issue through its US subsidiary AvangridDealroom has a profile for this one. Try Dealroom → in New York State. The proceeds will go mainly to distribution and transmission networks to strengthen the state's electricity grid.
The details: The post-IPO debt came in two tranches — $350 million over five years and $300 million over 10. Demand ran nearly four times higher than supply, and the deal closed with no new-issue premium.
Why now? The raise supports Iberdrola's US investment programme, which aims to mobilise €16 billion by 2028. Of that, €12 billion is earmarked for electricity grids and €4 billion for generation and customers.
What's the endgame? Nearly half the spending will land in New York, where group distributors NYSEGDealroom has a profile for this one. Try Dealroom → and RG&E are running Powering New York — a roughly €3.7 billion grid investment plan through 2032. The goal is to reinforce infrastructure and support new electrification solutions.
The bigger picture: Through Avangrid, Iberdrola operates 175,000km of transmission and distribution networks serving 10 million people in the US. It manages a regulated asset base of about €6.7 billion, of which €2.5 billion sits in New York.
The signal: The oversubscribed issue — closing on improved terms — points to institutional confidence in the Spanish energy group's US strategy. As electrification demand rises, grid operators are tapping debt markets to fund the infrastructure build-out.
Read more: expansion.com
