Iberdrola, Europe’s largest utility, has launched a $5.87 billion capital increase to accelerate investment in regulated power grids in the United States and the United Kingdom, reported by Reuters.
The company now plans to raise annual investment to around €15 billion, up from €12 billion. It is doubling down on transmission and distribution networks in stable markets with predictable returns.
Looking ahead, over the next six years, Iberdrola will invest about €55 billion in power grids. More than 80% of this will go to the U.S. and U.K., where regulators and governments actively support grid upgrades. This level of spending marks a 75% increase from the amount invested in the previous six-year cycle.
Executive Chairman Ignacio Galán called this ‘an unprecedented investment opportunity’ during a call with analysts. Furthermore, he said the value of Iberdrola’s regulated grid assets would reach over €90 billion by 2031, up from €55 billion today.
The fresh capital raised will support a broader funding strategy. This includes cash flow, debt issuance, asset sales, and strategic partnerships. Galán said no further equity raises are planned before 2030. To that end, Iberdrola will present its updated strategy on September 24 at a Capital Markets Day in London.
Meanwhile, Galán criticised Spain’s draft regulatory framework for grid remuneration, calling it ‘a clear negative signal to the market.’ As a result, Spain’s role in the company’s investment plans will shrink. In addition, other utilities have warned that unattractive returns could drive investment away from Spain’s energy infrastructure.
The capital increase was launched via an accelerated bookbuilding and was fully subscribed at €15.10 per share. That price reflects a discount to Tuesday’s closing price of €15.895. Consequently, Spain’s securities regulator temporarily suspended trading in Iberdrola shares on Wednesday morning.
Separately, the company posted a first-half net profit of €3.56 billion, down 14% from last year. The 2023 figure had included a gain from the sale of gas assets in Mexico. Adjusting for that one-off, net profit rose 20%.
EBITDA climbed 5% to €8.3 billion, driven by strong performance in the U.S. and U.K. networks, which offset weaker Spanish renewables. Over the past 12 months, Iberdrola invested a record €17.3 billion. More than 60% of that went to the U.S. and U.K.
At the same time, net debt dropped to around €52 billion, while available liquidity climbed above €19 billion.
Finally, Iberdrola reaffirmed its dividend policy and commitment to its current credit ratings. The company remains focused on growing its regulated networks, which form the core of its long-term infrastructure strategy.
