Iberdrola’s 6,500-Basis-Point Bond Typo Carries Legal Risks
- Spanish utility gave the wrong bond spread on its term sheet
- A London law firm sees potential for an investor settlement
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Iberdrola SA’s 6,500-basis-point typo on a bond document has put the Spanish utility into a legal gray area.
The company made the error on a term sheet filed for regulatory purposes, listing the spread over Euribor as 65% instead of 65 basis points. Even though a correction was issued last month, it could still be a costly mistake, according to Jake Hardy, a partner at Reynolds Porter Chamberlain LLP with more than 20 years of experience in financial litigation.