Iberdrola secures financing deals worth over $7.5 billion, linked to green and sustainability initiatives
Iberdrola, a global leader in the renewable energy sector, has announced a new series of sustainable finance transactions, raising €6.6 billion. The funds will be used for the construction of the UK's East Anglia THREE, one of the largest offshore wind farms in the world, and other green energy projects.
The new financing deal follows an agreement with UAE-based Masdar to co-invest €5.2 billion in the East Anglia THREE project. The €4.1 billion green financing for the project is backed by long-term power purchase agreements, including a PPA signed with Amazon in 2024.
The five-year, multicurrency facility was signed with 32 international banking institutions, demonstrating the growing investment opportunities for Iberdrola. The new credit facility will strengthen Iberdrola's liquidity and diversify its funding sources, contributing to its ongoing efforts in increasing its financing structure with green and sustainable products, as set in the goal in 2021.
As of the end of 2024, Iberdrola's sustainable financing exceeded €60 billion. In 2024, 94% of the financing signed by Iberdrola was sustainable. The company's decarbonization targets are closely integrated with its financial strategy, particularly its sustainability-linked credit lines and bonds.
Iberdrola's ESG credentials are robust, with an S&P Global ESG Score of 88/100 (top 1% for its industry) and inclusion in the Dow Jones Sustainability Indices for 25 consecutive years. Transparency and measurable outcomes, like real-time disclosure of green bond allocations and rapid decarbonization, strengthen investor and creditor trust, helping Iberdrola maintain favorable borrowing terms and access to a growing pool of ESG-focused capital.
The East Anglia THREE project, a 1.4 GW offshore wind farm located off the Suffolk coast in the UK, is anticipated to come into operation in Q4 2026. When operational, it will deliver enough clean energy to power 1.3 million British homes. Ignacio Galán, Executive Chairman of Iberdrola, stated that the deal strengthens their capacity to increase 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.
Iberdrola's commitment to renewables, electrification, and energy efficiency is evident in its ambitious plans. The company aims to double down on these areas, with a growth strategy emphasizing networks, geographic diversification, and a balanced energy mix, all with an eye toward deeper decarbonization. While specific future carbon targets beyond its emissions intensity are not explicitly provided, Iberdrola’s trajectory is clear: continued scaling of renewables, electrification of hard-to-abate sectors, and leading in new technologies like green hydrogen.
A notable 2025 target is to have two-thirds of its debt classified as green or sustainable—a reflection of its broader ESG commitment. With 94% of its 2024 new debt issuances already sustainability-linked, Iberdrola is signaling to markets its intention to be a standard-bearer in sustainable finance. 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 and the alignment of its investments with the EU Taxonomy.
This new financing deal marks a significant step forward in Iberdrola's mission to combat climate change and accelerate the transition to a sustainable energy future. As Iberdrola continues to invest in renewable energy projects, it strengthens its position as a global leader in the fight against climate change.
- Iberdrola's new green bonds will contribute to the construction of the East Anglia THREE offshore wind farm, a project that aims to deliver clean energy to power 1.3 million British homes.
- The €4.1 billion green financing for the East Anglia THREE project is part of Iberdrola's ongoing efforts to increase its financing structure with green and sustainable products.
- Iberdrola's sustainable financing exceeded €60 billion as of the end of 2024, with 94% of its financing being sustainable.
- Transparency and measurable outcomes, like real-time disclosure of green bond allocations, help Iberdrola maintain favorable borrowing terms and access to a growing pool of ESG-focused capital.
- This new financing deal marks a significant step forward in Iberdrola's mission to combat climate change and accelerate the transition to a sustainable energy future.
