ESG Post

Sustainable Finance

Iberdrola & partners sign €500M syndicated green loan with Cesce coverage

Multinational electric utility company Iberdrola along with ICO, Sabadell, and HSBC have finalised a EUR 500 million syndicated green loan, covered by Cesce under its Green Investment Policy and guaranteed by the Internationalisation Risk Reserve Fund (FRRI) from Spain’s Ministry of Economy, Trade and Enterprise. The 15-year loan aims to enhance Iberdrola’s financing diversification.

This 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 under its ICO-Verde programme. It will finance wind and photovoltaic projects, as well as battery projects in the US, Australia, and Italy, totaling 897 MW of renewable capacity expected to be operational by 2025-2026.

Iberdrola’s total loans covered by Export Credit Agencies (ECAs) now amount to EUR 2.5 billion. These agencies manage credit and investment insurance on behalf of states, addressing political, commercial, and extraordinary risks associated with internationalisation.

The loan diversifies Iberdrola’s financing sources, including capital markets, financial institutions, development banks, and state agencies, with HSBC acting as the coordinating bank. Cesce, as the Spanish Export Credit Agency (ECA), manages credit and investment insurance for green projects abroad, complying with the EU Taxonomy or OECD Consensus requirements.