Iberdrola, ICO, Sabadell and HSBC have signed a syndicated green loan for €500m to finance 897MW of renewables capacity in Italy, the US and Australia.
The loan is insured by Cesce, through its Green Investment Policy and coverage is provided on behalf of the Spanish State, with assistance from the Internationalization Risk Reserve Fund, which is part of the Spanish Ministry of Economy, Trade and Enterprise.
The green loan, which has a repayment period of 15 years, will strengthen the diversification of Iberdrola’s financing sources.
It is the first loan aimed at promoting renewable energy projects that the ICO will finance with Next Generation funds, in the second phase of the Recovery Plan.
The operation is part of the “ICO-Verde” programme and the funds will be used to finance wind, solar and battery storage projects in the United States, Australia and Italy.
The total financed renewable capacity of 897MW capacity is expected to enter into operation between 2025 and 2026.
Iberdrola’s total loans covered by Export Credit Agencies now exceeds €2.5bn.
ECA’s exclusively manage credit and investment insurance on behalf of states, covering political, commercial and extraordinary risks associated with internationalisation.
This loan helps to further diversify Iberdrola’s sources of financing, which includes capital markets, financial institutions, development banks (such as the World Bank or the European Investment Bank), as well as Export Credit Agencies.
HSBC was the coordinating bank for the operation.
Cesce’s Green Investment Policy covers the risks of funds granted to Spanish companies or their foreign subsidiaries for the financing of projects abroad that are considered green, by complying with the requirements set out in the EU Taxonomy or in Annex I of the OECD Consensus.
Iberdrola is investing €41bn between 2024 and 2026 in networks, renewables and storage to boost the electrification of the economy.