Iberdrola backs global renewables plans with EUR-500m loan deal

Spanish utility Iberdrola SA (BME:IBE) has signed an agreement to receive a EUR-500-million (USD 540.3m) syndicated green loan to back its renewable energy projects in the US, Australia and Italy.

The credit facility will mature in 15 years and will be extended by Spanish public bank and financial agency ICO, Banco Sabadell and Britain’s HSBC, Iberdrola said on Thursday. The debt will be insured by Spanish export credit agency Cesce.

The fresh financing is earmarked for Iberdrola’s wind, solar photovoltaic (PV) and battery energy storage system (BESS) projects, enabling the utility to use funds from a diversified funding basket. With this transaction, the company’s total financed renewable capacity will reach 897 MW, expected to go online between 2025 and 2026.

The latest transaction comes on the heels on Iberdrola’s EUR-750-million green bond placement in July and an offering for CHF 335 million of green bonds in Switzerland a month earlier. The company, which pledged to invest EUR 41 billion in networks, renewables, and storage between 2024 and 2026, previously tapped the European Investment Bank (EIB) and the World Bank to support its targets.

(EUR 1.0 = USD 1.081)

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