Iberdrola, one of the largest energy companies in the world, has signed a green loan agreement worth 500 million euros. The loan, provided by Citi and partially guaranteed by the Norwegian Export Credit Agency (Eksfin), will be used to finance the construction and development of the ‘East Anglia 3’ offshore wind farm in the United Kingdom.
This loan, the first of its kind guaranteed by Eksfin for a Spanish energy company, has a maturity of nine years and allows Iberdrola to extend its debt duration at a competitive price. It is part of the company’s financing strategy, aimed at diversifying its debt structure.
The ‘East Anglia 3’ offshore wind project will have a capacity of 1,400 megawatts (MW), enough to power 1.3 million households with clean energy. This capacity is greater than the combined populations of Liverpool and Glasgow.
Ignacio Sánchez Galán, the Chairman of Iberdrola, highlighted the favorable long-term conditions of the loan and its 24-month availability period, which will provide liquidity to the company. This will further strengthen Iberdrola’s financial position, which already had over 21 billion euros in reserves at the end of the first quarter.
Eksfin, the Norwegian Export Agency, is a public institution with a triple-A credit rating, the highest possible solvency rating according to credit rating agencies. This operation strengthens the relationship between Iberdrola and its Norwegian partners. The company is actively involved in offshore wind development in Norway with TotalEnergies and Norsk Havvind.
In addition, Iberdrola has a strategic alliance with the Norwegian sovereign wealth fund, managed by Norges Bank Investment Management. This alliance aims to co-invest in 1,265 MW of new renewable capacity in Spain, with 20% being wind power and 80% photovoltaic. They are also working to expand this alliance by an additional 500 MW for the Iberian Peninsula.
The Norwegian sovereign wealth fund is one of the main shareholders of Iberdrola, with a stake of over 3% for more than seven years.
This loan contributes to the diversification of Iberdrola’s financing sources. The company is able to combine various sources, including financial institutions, development banks such as the World Bank and the European Investment Bank (EIB), the market (as it recently issued bonds worth 850 million euros), and state agencies that support export operations by reducing or eliminating risks.
Furthermore, this loan reinforces Iberdrola’s commitment to sustainable financing. The company has a volume of over 50 billion euros in live operations, of which nearly 18.5 billion euros are green bonds, making it the largest private issuer of this type of debt.
Iberdrola’s investment in the ‘East Anglia 3’ offshore wind farm and its commitment to sustainable financing demonstrate the company’s dedication to renewable energy and its contribution to the global transition towards a cleaner and more sustainable future.
How much Euros in available liquidity did Iberdrola secure for the ‘East Anglia 3’ offshore wind farm project by the end of September 2021?
Euros in available liquidity at the end of September 2021.
The construction of the ‘East Anglia 3’ offshore wind farm, located in the North Sea, is expected to create around 2,900 jobs during its development and operation phases. It will also contribute to the reduction of CO2 emissions, helping the United Kingdom achieve its renewable energy targets.
Iberdrola has been a pioneer in renewable energy, with a focus on wind power. The company currently operates more than 16,700 megawatts of renewable capacity worldwide, making it one of the largest renewable energy companies globally.
The company’s commitment to sustainability goes beyond its renewable energy projects. It has set ambitious targets to reduce its CO2 emissions intensity and aims to be carbon neutral by 2050. Iberdrola has also implemented various initiatives to promote environmental protection and social development in the communities where it operates.
By securing this green loan for the ‘East Anglia 3’ project, Iberdrola continues to demonstrate its leadership in the renewable energy sector and its commitment to a sustainable future. The company’s investment in clean energy projects not only contributes to the fight against climate change but also stimulates economic growth and creates job opportunities. As the demand for clean energy continues to rise, Iberdrola is well-positioned to capitalize on the global shift towards renewable sources and pave the way for a cleaner and more sustainable energy sector.
This green loan obtained by Iberdrola is a major boost for the East Anglia 3 offshore wind project, illustrating the company’s commitment towards sustainable energy solutions.
This green loan demonstrates Iberdrola’s commitment to renewable energy, and the East Anglia 3 offshore wind project is a significant step towards a sustainable future. Well done!