Spanish energy giant Iberdrola has secured a €500 million (£432 million) loan with Citi and guaranteed by the Norwegian Export Credit Agency Eksfin for the construction and development of the East Anglia III offshore wind farm.
East Anglia III will have a capacity of 1.4GW when completed and is being constructed by ScottishPower, a subsidiary of Iberdrola. Onshore construction for the wind farm began in July 2022.
The loan is the first Eksfin guaranteed financing to a Spanish energy company, and will have a duration of nine years, making it possible to extend the length of Iberdrola’s debt and “diversifying its debt structure”.
Iberdrola says it has a strong relationship with Norwegian partners, and is active in offshore wind development in Norway with in partnership with TotalEnergies and Norsk Havvind.
Iberdrola also says it maintains a ‘strategic alliance’ with the Norwegian sovereign wealth fund, with plans to co-invest in 1.265GW of new renewable capacity in Spain (20% wind and 80% solar). The sovereign wealth fund Is also a major shareholder in Iberdrola with a stake over 3% for the past 7 years.
At the end of July, Iberdrola raised its 2023 profit forecast for a second time after higher revenues in Europe and the UK drove a 21% increase in first-half net profit.
In 2020, Iberdrola announced a huge investment plan in renewable energy, committing to a €75 billion (£68 billion) investment plan to 2025. In 2022, the company announced plans to invest £6.7 billion across the UK between 2023-25.
