Masdar And Iberdrola Achieve Financial Close For €5.2 Billion East Anglia THREE Offshore Wind Project

Masdar and Iberdrola have successfully secured financial closure for the East Anglia THREE offshore wind farm, a significant project in the renewable energy sector. This 1.4-gigawatt (GW) venture is among the largest offshore wind deals of this decade. The financing, amounting to £3.6 billion (€4.1 billion), involves 23 banks and the Danish Export Credit Agency (EIFO). This funding will cover a major portion of the project's estimated €5.2 billion cost.

The collaboration between Masdar and Iberdrola marks a pivotal moment in their €15 billion strategic alliance formed in December 2023. This partnership aims to boost clean energy initiatives across key markets like the UK, Germany, and the US. Both companies hold equal shares in East Anglia THREE, which will significantly contribute to Europe's offshore wind goals.

East Anglia THREE is set to become one of the world's largest offshore wind farms by Q4 2026, located off Suffolk's coast in the UK. It will generate enough renewable energy to power 1.3 million homes in Britain. The project is expected to create over 2,300 jobs during construction and support 100 long-term positions throughout its operation.

Financial Backing and Revenue Security

The financing deal was oversubscribed by more than 40%, indicating strong confidence from lenders in the project's potential and partner strength. The project benefits from a 15-year CPI-linked Contract for Difference (CfD) awarded during UK Government auctions AR4 and AR6, alongside a Power Purchase Agreement (PPA) with Amazon signed in 2024.

Mohamed Jameel Al Ramahi, CEO of Masdar, stated: "The level and profile of investor interest in this financing deal – the largest we have ever signed at Masdar – reflects our position as a global leader in sustainable finance and investor appetite for high-quality renewable energy assets that deliver impact at scale."

Participating Financial Institutions

The banks involved include 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. Crédit Agricole CIB and MUFG served as financial advisors for this transaction.

This development represents a crucial advancement in Masdar's collaboration with Iberdrola towards achieving clean energy goals in the UK. Their joint efforts on gigawatt-scale projects are set to shape future clean energy landscapes both locally and internationally.

With inputs from WAM