Global energy and electricity provider Iberdrola announced that it has issued €1.5 billion in green bonds, in an offering that saw strong investor demand, despite recent market headwinds.

The green bond comes as Iberdrola aims to invest heavily in its clean energy capacity, following its announcement last week of plans to invest €47 billion between 2023-2025, including €17 billion for renewable energy, and €27 billion in its electricity networks, and a target to boost renewable capacity to 52,000 MW by the end 2025. Earlier this year the company said that it aims to invest €150 billion over the next decade, tripling its renewable energy capacity and doubling its network assets.

The green bond offering, consisting of a €750 million six-year maturity bond and a €750 million a ten-year maturity bond, was more than 3.5x oversubscribed, drawing orders of more than €5.3 billion. The issuance was met with strong demand despite a challenging market environment, which resulted in a 13% decline in global green bond issuance volumes last quarter.

The company said that a majority of the deal was placed with ESG investors.

The deal marks the latest in a string of sustainable finance transactions for Iberdrola, including a €2.5 billion sustainability linked credit line signed by the company in July, a €1 billion green loan with Banco Santander announced in April, and a recent €550 million green loan agreement with the European Investment Bank (EIB).

Last year, Iberdola announced plans for its financing structure to have an increasingly higher percentage of green and sustainable products, estimated to account for nearly two-thirds of its debt by 2025.

Participating banks in the placement included JP Morgan (Coordinator), Caixabank, Citi, Commerzbank, Crédit Agricole, Deutsche Bank, Morgan Stanley, MUFG, Natwest and Royal Bank of Canada.