Global energy and electricity provider Iberdrola announced a series of new sustainable finance transactions, raising €6.6 billion (USD$7.7 billion), including €4.1 billion of green financing for the construction of the UK’s East Anglia THREE, one of the largest offshore windfarms in the world, and a new €2.5 billion sustainability-linked credit line with an international consortium of banks.
The new transactions form part of efforts by Iberdrola for its financing structure to have an increasingly higher percentage of green and sustainable products, a goal set by the company in 2021. In 2024, 94% of the financing signed by the company was sustainable, with the group’s sustainable financing as of the end of 2024 exceeding €60 billion, including €22.9 billion of green bonds, €15.6 billion sustainable credit lines, and €6 billion sustainable commercial paper, in addition to green and sustainable bank loans, and green structured finance and multilateral loans.
Iberdrola’s new €4.1 billion green financing deal followed an announced agreement last week by the company with UAE-based clean energy-focused developer Masdar to co-invest €5.2 billion to develop the 1.4 GW East Anglia THREE project – the largest offshore wind transaction of the decade.
Located off the Suffolk coast in the UK, and anticipated to come into operation in Q4 2026, East Anglia THREE will be one of the largest offshore wind farms globally, delivering enough clean energy to power 1.3 million British homes.
The €4.1 billion green financing is based on a financing structure for large projects in which the capital is repaid with the cash generated by the project once it is up and running, with the deal backed by long-term power purchase agreements, including a long-term power purchase agreement (PPA) signed with Amazon in 2024. Iberdrola said that the funds will be used to cover the construction costs of the wind turbines, substations, submarine cables and converter stations, and will also finance the operation and maintenance costs prior to commercial operation. The financing deal was signed with 23 banks.
Under the terms of the new €2.5 billion credit facility, the cost of credit will be linked to Iberdrola’s achievement of its decarbonization targets, as well as to the alignment of the company’s investments in networks, renewables and storage with the EU Taxonomy. According to Iberdrola, the five-year, multicurrency facility, signed with 32 international banking institutions, will “strengthen its liquidity and diversify its funding sources in a context of growing investment opportunities.”
Following the signing of the credit facility, Iberdrola’s Executive Chairman, Ignacio Galán, said:
“This deal strengthens our capacity to continue increasing our investments in networks, renewables and storage, to meet the strong growth in demand driven by electrification in countries such as the United States and the United Kingdom.”
