Iberdrola Signs Green Loan with Banco Santander for €1 billion
Iberdrola, an electric utility company, has signed a green loan for €1 billion with Banco Santander, a financial services company, with the support of the Export Credit Agency (ECA). The loan will have a term of 15 years and will help finance the purchase of turbines for onshore and offshore wind farm projects in Spain, Poland, Greece, Germany, and the UK.
Export Credit Agencies (ECAs) manage credit and investment insurance exclusively on behalf of states, covering political, commercial, and unusual risks linked with globalisation.
The Export Credit Agency will offer the green loan guarantee mechanism, while Banco Santander will provide the funding for the operation.
With this new loan, Iberdrola maintains its leadership in ESG financing, with more than €41 billion in signed transactions, including more than €23 billion in green financing and roughly €18 billion in credit lines, loans, or commercial paper programmes related to sustainability goals.
Iberdrola has secured its largest green loan to date with this deal.
The company was a pioneer in onshore wind power two decades ago, and it is now a pioneer in offshore wind power.
Iberdrola has about 30,000 MW of operational capacity and projects in the pipeline and in the early stages of development.
By 2030, the company expects to have 12,000 MW of offshore wind energy in operation.
Offshore wind energy is expected to be one of the company's major growth vectors in 2021.
The company's project portfolio includes projects in the United States, the United Kingdom, Poland, Sweden, Ireland, Taiwan, Japan, the Philippines, and Brazil.
With €65.7 billion in renewable energy funding mobilised between 2019 and 2021, Banco Santander is the market leader. At the end of the previous financial year, Santander was the world's No. 1 bank in renewable energy project funding.