Iberdrola and Masdar Reach FC for East Anglia THREE

Masdar, a global clean energy leader, and Iberdrola, one of the world’s largest energy companies, have reached financial close for the 1.4 GW East Anglia THREE offshore windfarm, in one of the biggest offshore wind transactions this decade.

Project financing facilities totalling $4.82 billion have been secured with 23 banks and the Danish Export Credit Agency (EIFO), in one of the biggest such transactions in the sector and the largest ever by Masdar.

The financing will cover a substantial part of the total project costs, estimated at approximately $6.11 billion. The facility was oversubscribed by more than 40%, reflecting lenders’ confidence in the project’s fundamentals and the robustness of the partners.

Masdar CEO Mohamed Jameel Al Ramahi said that the level and profile of investor interest in this financing deal, the largest Masdar has ever signed, reflected their position as a global leader in sustainable finance and investor appetite for high-quality renewable energy assets that deliver impact at scale.

He also said that the announcement represents a significant step forward in their partnership with Iberdrola, and in the UK’s clean energy journey, supporting the nation in meeting its energy transformation objectives.

It may be recalled that Masdar and Iberdrola announced their co-investment in East Anglia THREE this month, with each party taking a 50% stake and having co-governance of the 1.4 GW asset, which will be pivotal in advancing Europe’s ambitious offshore wind development targets.

Located off the Suffolk coast in the UK, East Anglia THREE will become one of the world’s two largest offshore wind farms when it comes into operation in Q4 2026, delivering enough clean energy to power 1.3 million British homes.

The project benefits from long-term revenue security through a 15-year CPI-linked Contract for Difference (CfD) awarded in the UK Government’s AR4 and AR6 auctions, as well as a Power Purchase Agreement (PPA) with Amazon signed in 2024.

The co-investment in East Anglia THREE marks a significant milestone in the $17.64 billion partnership Masdar and Iberdrola signed in December 2023, one of the largest ever bilateral alliances in the global clean energy sector, to accelerate clean energy deployment across key markets including the UK, the US and Germany.

The participating banks in the East Anglia THREE financing are: BBVA, HSBC, ING, NatWest, SMBC, MUFG, Bank of China, Crédit Agricole, CaixaBank, Santander, BNP Paribas, Helaba, Barclays, ANZ, Rabobank, FAB, ICO, Abanca, Kutxabank, Standard Chartered Bank, Bank of Ireland, CIC and Siemens Bank.

Iberdrola’s Another Deal

Meanwhile, in a separate deal, Iberdrola has closed the accelerated capital increase of $5.88 billion, aimed at financing the investment plan in electricity grids in the US and the UK. The transaction was oversubscribed by 3.8 times, demonstrating the strong market support for the company’s strategy.

The capital increase closed at a price of $17.81 per share, above the guaranteed price and 7.5% higher than the average share price of the last year.

Iberdrola, which is Europe’s leading utility by capitalisation and one of the two largest in the world expects its network asset base to exceed $105.83 billion by 2031, compared with $35.28 billion in 2020, a 3-fold increase in just a decade.