Skip to content
Subscriber Only

Sorry We Misplaced the Decimal Point, Iberdrola Tells Investors

  • Utility’s interest rate margin is Euribor plus 0.65%, not 65%
  • Mistake is reminiscent of Citigroup misstating bond maturity
Iberdrola headquarters in Bilbao, Spain.

Iberdrola headquarters in Bilbao, Spain.

Photographer: Pau Barrena/Bloomberg

Investors in the floating-rate notes of a Spanish utility company received a bizarre notice: the spread is 65 basis points over Euribor, not 65%.

The error was made in the term sheet when the bonds were sold about a month ago. But given that the mistake only appeared on the documentation, rather than on communication with investors, there was no harm done to Iberdrola’s 250 million euro ($305 million) notes, which were little changed.