Sorry We Misplaced the Decimal Point, Iberdrola Tells Investors

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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.

Still, it’s a reminder of a correction Citigroup made last year. It misstated the maturity of a $1 billion bond by 18 years, and corrected it in 2020, seven years after issuance.

Under the correct rate, investors in Iberdrola’s bonds will receive a first coupon of 0.11%.

A spokeswoman at Iberdrola did not immediately respond to a call and email seeking comment.

©2021 Bloomberg L.P.

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