Iberdrola Raises $5.88 Billion to Finance Grid Investments in US and UK.

Iberdrola, Spain's largest utility company, raised €5.88 billion through a capital increase to fund grid investments in the US and UK. The company offered 331 million new shares at a discount of 4.7% from Tuesday's closing price. The expansion will allow Iberdrola to take advantage of €55 billion in investment opportunities between 2026 and 2031, a 75% increase from the previous period.

Iberdrola, Spain's largest utility company, raised €5.88 billion through a capital increase to fund grid investments in the United States and the United Kingdom. The company offered 331 million new shares at a discount of 4.7% from Tuesday's closing price. This expansion will allow Iberdrola to take advantage of €55 billion in investment opportunities between 2026 and 2031, a 75% increase from the previous period.

The capital increase, which was announced on July 23, 2025, was well-received by investors. The order book was 3.8 times oversubscribed by existing shareholders and new investors, indicating strong demand for the new shares. The shares were priced at €15.15, a 4.7% discount from the previous day's closing price of €15.895.

Executive Chairman Ignacio Sanchez Galan highlighted the "unprecedented investment opportunity" in the U.S. and the UK, where Iberdrola plans to increase its annual investments to around €15 billion from around €12 billion. This significant increase is aimed at upgrading and expanding power grids in these countries, where returns are steady and healthy.

The capital raised, along with debt, operating cash flow, asset sales, and partnerships, will help fund the new strategy that the company plans to set out in September. No further equity raises are expected until at least the end of the decade.

The move comes as Spanish utilities have warned that the country risks losing critical investments in grids to other countries due to the remuneration on grid assets proposed by regulators being set below what they expect. Galan stated that the draft proposal provides a "clear negative signal to the market."

Iberdrola's first-half net profit declined 14% from a year earlier to €3.56 billion, primarily due to the inclusion of the sale of gas assets in Mexico. Excluding one-offs, profit was up 20%.

The Spanish utility expects its regulated asset base to triple to more than €90 billion in 2031 from the level in 2020. While investments will grow almost fourfold in the UK and near double in the US, the company’s Spanish assets are projected to shrink by 10% to €3.5 billion.

References:
[1] https://www.reuters.com/sustainability/climate-energy/iberdrola-raises-59-billion-fund-growth-us-britain-2025-07-23/
[2] https://www.reuters.com/sustainability/climate-energy/iberdrola-launches-59-bln-capital-increase-fund-grid-investments-2025-07-23/
[3] https://nz.finance.yahoo.com/news/iberdrola-starts-5-billion-share-074108909.html
[4] https://sg.finance.yahoo.com/news/iberdrolas-first-half-net-profit-054225845.html