Spanish utility Iberdrola has signed a €2.5 billion credit facility with a consortium of 32 international banks, a move the company says will reinforce its liquidity position and support investment in renewable energy and grid infrastructure.
The facility, announced on Tuesday, was oversubscribed by 45%, which Iberdrola said reflects strong backing from the global financial sector for its long-term growth strategy. The agreement includes a five-year term with the option of a two-year extension and allows for drawdowns in multiple currencies.
“This credit facility once again demonstrates the full confidence of the international financial community in our growth strategy, with which we promote energy self-sufficiency and security, economic growth and the well-being of society,” Iberdrola chairman Ignacio Galán said in a statement.
Iberdrola said the new financing comes with the most competitive terms available to the group and will help fund investments in renewables, energy storage and electricity networks, particularly in the United States and the United Kingdom, where rising electrification is driving higher energy demand.
The company reported liquidity of €20.9 billion at the end of the first quarter of 2025.
The new facility includes environmental performance conditions, with the cost of financing linked to Iberdrola’s decarbonisation targets and alignment with the European Union taxonomy for sustainable activities. The utility said more than 97% of its credit lines now meet sustainable finance criteria.
Avangrid, Iberdrola’s U.S. subsidiary, is also participating in the facility. The company cited “great growth opportunities in the country” as a reason for its inclusion.
BBVA acted as co-coordinator and agent bank for the deal, while Bank of America served as co-coordinator. Sustainability coordinators included BBVA, BNP Paribas and Crédit Agricole.
The agreement follows Iberdrola’s recent €4.1 billion green financing package for its East Anglia Three offshore wind project in the UK, which involved 24 banks.
“We are increasing our investments in networks, renewables and storage to respond to the strong growth in demand resulting from electrification in countries such as the United States of America and the United Kingdom,” Galán said.
