Iberdrola, Spain’s largest energy utility, has announced plans to raise at least €1.25bn ($1.73bn) in new capital through a share issue as part of a drive to reduce debt and maintain its credit rating.

In a filing on Tuesday night to the Comisión Nacional del Mercado de Valores, the Spanish market regulator, Iberdrola said it would raise the money from institutional and wealthy private investors through an accelerated bookbuilding run by investment banks JPMorgan, Merrill Lynch and Morgan Stanley. The pricing has yet to be set.