€300m Loan to Decarbonise Fossil Fuel Dependent Countries

A €300 million loan agreement has been signed to develop renewable energy projects in countries dependent on fossil fuels, including Morocco, Poland and Vietnam.

Iberdrola and the World Bank, through its private sector investment arm, the International Finance Corporation (IFC), have already allocated €170 million of the loan for the support of onshore wind projects in Poland.

Iberdrola and IFC are also evaluating collaboration options in the development of energy projects such as offshore wind and green hydrogen in additional emerging markets.

José Sainz Armada, Iberdrola’s Director of Finance, Control and Corporate Development, said: “This loan will allow Iberdrola to continue contributing to the energy transition, decarbonisation and electrification of developing countries, which are still highly dependent on fossil fuels. It also consolidates IFC as one of our major allies in the financing of renewable projects.”

Alfonso García Mora, Vice President for Europe, Latin America, and the Caribbean at IFC, also commented: “This loan is a significant step in the global IFC-Iberdrola Energy Transition Partnership, which aims to support Iberdrola’s expansion and re-entry into emerging markets in need of decarbonizing their energy matrix.”

This latest loan comes after Iberdrola’s arm in Brazil, Neoenergia, secured two sustainability-linked loans in previous years – one of $155 million in May 2023 and another of $115 million in July 2022.