Iberdrola has initiated a substantial €5 billion equity raising through accelerated bookbuilding to finance its strategic pivot toward power grid infrastructure. The offering carries indicative pricing of €15.10 per share, with early investor interest reportedly exceeding the deal size, suggesting strong market confidence in the utility's infrastructure-focused strategy.

The capital injection supports Iberdrola's ambitious plan to triple its regulated asset base to over €90 billion by 2031, representing one of the largest utility infrastructure expansion programs in Europe. The investment strategy heavily favors international markets, with regulated assets expected to grow fourfold in the UK and nearly double in the US, while Spanish assets will shrink to €3.5 billion due to unfavorable regulatory conditions.

Spanish market dynamics are driving the geographic reallocation of capital, as the national regulator CNMC has proposed network returns of 6.46%, significantly below levels in other European markets. Industry associations warn these low returns could jeopardize necessary grid investments, particularly following reliability concerns highlighted by a major nationwide blackout in April that left millions without power.

The transaction enables annual gross investments of approximately €15 billion, positioning Iberdrola to capitalize on transmission and distribution opportunities in markets with more attractive tariff frameworks. This capital deployment strategy reflects broader industry trends where utilities are seeking regulatory environments that provide adequate returns for essential grid modernization and expansion projects.