Iberdrola has secured a new €2.5bn ($2.71bn) credit facility, signed with thirty-two international banking institutions. This facility, oversubscribed by 45%, confirms the Spanish company’s appeal among global financial markets and its ability to mobilise capital on a large scale. The group remains the largest electricity provider in Europe by market capitalisation and one of the two largest players in the global sector.
A structuring deal for US ambitions
The facility, with an initial five-year duration and an option to extend by two further years, is multi-currency and offers the most advantageous conditions currently available to Iberdrola. The cost of the credit is directly linked to the achievement of decarbonisation targets and compliance of investments in grids, renewables and storage with European Union taxonomy. Avangrid, Iberdrola’s US subsidiary, is participating in this transaction, underlining the strategic importance of the North American market for the group.
The company reported that this operation strengthens liquidity, which stood at €20.9bn ($22.67bn) at the end of the first quarter, according to the published figures. Ignacio Galán, Executive Chairman of Iberdrola, stated at the signing that this agreement “strengthens [our] capacity to continue growth in grids, renewables and storage to meet strong demand driven by electrification, notably in the United States and the United Kingdom”, Bloomberg reported.
A sustainable and internationalised financing strategy
The credit coordination was handled by Banco Bilbao Vizcaya Argentaria (BBVA) as agent and co-coordinator, Bank of America as co-coordinator, while BBVA, BNP Paribas and Crédit Agricole acted as sustainability coordinators. Following this transaction, more than 97% of the group’s credit lines are now considered sustainable, meeting the responsible financing criteria required by major international institutions.
Recently, Iberdrola also completed a €4.1bn ($4.45bn) green financing deal for the East Anglia THREE offshore wind farm project, mobilising twenty-four banks. These initiatives highlight growing interest from global banking institutions for major electricity infrastructure projects, while enabling the group to increase its financial flexibility amid ongoing international expansion.
The agreement comes as the international electricity sector sees intensified investment in grids and renewable assets, fuelled by rising electricity demand and expanding national electrification policies.
