- The funds will be used mainly to finance the acquisition of turbines for both onshore and offshore windfarm projects in Spain, Poland, Greece, Germany and the United Kingdom
- This green loan facility, guaranteed by a Northern European export credit agency and funded by Banco Santander, will strengthen the diversification of Iberdrola’s sources of financing.
Iberdrola continues to drive its green financing facilities. The company chaired by Ignacio Galán has agreed a €1 billion green loan with Banco Santander, its largest to date, backed by an export credit agency in Europe. The loan has a maximum maturity term of 15 years.
The funds will be used primarily to finance Iberdrola’s orders of turbines for offshore and onshore windfarm projects in Spain, Poland, Greece, Germany and the United Kingdom.
Export credit agencies (ECAs) exclusively manage credit and investment insurance on behalf of States, covering political, commercial and extraordinary risks associated with international projects.
The guarantee mechanism for the green loan will be provided by the Export Credit Agency (ECA), while the funds for the operation will come from Banco Santander. This green loan will strengthen the diversification of Iberdrola’s sources of financing.
Iberdrola reaffirms global leadership in green finance
With this new loan, Iberdrola continues to consolidate its leadership in ESG financing, with more than €41 billion in signed operations, of which more than €23 billion correspond to green financing and around €18 billion to credit lines, loans or commercial paper programs subject to compliance with sustainability objectives. The transaction represents the largest green loan signed by Iberdrola to date.
The projects to be funded by this loan are aligned with the Sustainable Development Goals (SDGs) of the United Nations, specifically number 7 (Affordable and Clean Energy) and number 13 (Climate Action).
Strong momentum for wind energy
Two decades ago, the group was a pioneer in onshore wind power, and now Iberdrola is a world leader in offshore wind energy, with operational capacity pipeline and early-stage developments of more than 30,000 MW. Focused on countries with ambitious targets, the company expects to have 12,000 MW of offshore wind energy in operation by 2030 and cumulative investments of over €30 billion worldwide.
During 2021, offshore wind energy has become one of the company’s major growth areas. At year-end, Iberdrola has 1,260 MW offshore in operation, 1,800 MW under construction and 5,400 MW in advanced development, which will come into operation before 2027.
The company has a pipeline of projects in the United States, United Kingdom, Poland, Sweden, Ireland, Taiwan, Japan, the Philippines and Brazil, which could increase in the coming years thanks to the numerous auctions in which the company is participating. Potential investments associated with its offshore wind pipeline is estimated at €90 billion with many many projects maturing beyond 2030.
Banco Santander is a leader in renewable energy financing, with a mobilized volume of €65.7 billion between 2019 and 2021. At the close of the last financial year, Santander was the world’s leading bank in renewable energy project finance.