Iberdrola Completes €5B Capital Raise for Grid Expansion

Iberdrola has completed a €5 billion ($5.9 billion) capital increase, selling over 331 million new shares at a 4.7% discount amid strong investor demand totaling €19 billion in orders. The funds will support a €55 billion, six-year investment plan in power grids, with more than 80% earmarked for the U.S. and U.K., reducing the relative significance of Iberdrola's Spanish market. Spanish regulators temporarily suspended trading in Iberdrola shares due to the transaction's scale, and shares fell by about 3.3% after the resumption. The company aims to increase annual investments to around €15 billion to capitalize on what it calls an 'unprecedented investment opportunity' in grid infrastructure. Iberdrola reported a 14% year-on-year drop in first-half net profit to €3.56 billion, while revenue rose 0.5%, and it confirmed its 2025 guidance. Further details on the strategy will be presented at Iberdrola's capital markets day in September.