Iberdrola, a global leader in energy and electricity provision, has unveiled a series of sustainable finance transactions amounting to €6.6 billion (£5.7 billion). This includes €4.1 billion in green financing dedicated to the construction of East Anglia THREE, one of the world’s largest offshore wind farms, situated off the Suffolk coast in the UK. Additionally, Iberdrola has secured a €2.5 billion sustainability-linked credit facility with a consortium of international banks.
These transactions are part of Iberdrola’s broader strategy to increase the share of green and sustainable products within its financing structure, a target established by the company in 2021. By 2024, 94% of Iberdrola’s financial agreements were sustainable, with the group’s sustainable financing surpassing €60 billion. This includes €22.9 billion in green bonds, €15.6 billion in sustainable credit lines, and €6 billion in sustainable commercial paper, alongside other green and sustainable financial instruments.
The €4.1 billion green financing for East Anglia THREE follows a recent agreement with UAE-based Masdar to co-invest €5.2 billion in the 1.4 GW project, marking the largest offshore wind transaction of the decade. Scheduled to commence operations in the fourth quarter of 2026, East Anglia THREE will generate sufficient clean energy to power 1.3 million UK homes.
The financing for this project employs a structure where capital is repaid through the revenue generated once operational. It is supported by long-term power purchase agreements, including one with Amazon signed in 2024. The funds will cover construction costs for wind turbines, substations, submarine cables, and converter stations, as well as operational and maintenance expenses prior to commercial start-up. The financing arrangement involves 23 banks.
The new €2.5 billion credit facility links the cost of credit to Iberdrola’s decarbonisation goals and the alignment of its investments in networks, renewables, and storage with the EU Taxonomy. The five-year, multicurrency facility, signed with 32 international banking institutions, aims to enhance Iberdrola’s liquidity and diversify its funding sources amid increasing investment opportunities.
Iberdrola’s Executive Chairman, Ignacio Galán, stated that the credit facility bolsters the company’s ability to expand investments in networks, renewables, and storage, addressing the rising demand driven by electrification in countries such as the United States and the United Kingdom.