Spain’s export credit agency Cesce has agreed to cover a €500 million (US$547 million) syndicated green loan for Iberdrola to support its global expansion plans.

The facility with a 15-year maturity will help fund the Spanish energy company’s solar photovoltaic, wind and battery projects in the United States, Italy and Australia.

Banco Sabadell, HSBC and state-owned Instituto de Crédito Oficial (ICO) are financing the debt package, while Cesce is supplying an 80% guarantee on behalf of the Spanish state under its green investment policy. HSBC is the coordinating bank.

The total renewable capacity financed will reach 897 megawatts and is expected to be operational between 2025 and 2026, Iberdrola says.

The facility supports Iberdrola’s efforts to diversify its financing pool and brings the overall volume of its export credit agency-covered loans to €2.5 billion.

Last month, Iberdrola issued a green bond amounting to 335 million Swiss francs (US$386.35 million).

The transaction was carried out following the recent interest rate cut by the Swiss Central Bank. It is the first Swiss franc deal from Iberdrola since 2012, and the first green bond placement in the Swiss market. 

The funds will be used to finance green projects that meet the eligibility criteria established under Iberdrola's framework for green financing.

The company will invest €41 billion between 2024 and 2026, including €21 billion in electricity grids and €15.5 billion in renewables. 

Iberdrola is Europe's leading utility by capitalization and the second largest in the world. It was the first private group in the world to issue green bonds, and now has more than €21 billion of outstanding green bonds.