Global energy and electricity provider Iberdrola announced today that it has signed its largest ever green loan with Banco Santander, raising €1 billion to help finance its development of renewable energy projects across Europe.

The deal marks progress for Iberdrola on its goals to expand the use of sustainable finance and to significantly expand its renewable energy portfolio. Last year, the company announced plans for its financing structure to have an increasingly higher percentage of green and sustainable products, estimated to account for nearly two-thirds of its debt by 2025. The new loan brings Iberdrola’s ESG financing to over €41 billion.

In late 2020, Iberdrola launched a €75 billion capital plan, which includes massive investments over the next few years in renewable energy, with the company anticipating nearly doubling its renewables capacity by 2025. Over the next decade, the company aims to invest €150 billion, tripling its renewable energy capacity and doubling its network assets.

The new green loan, backed by an Export Credit Agency (ECA), and with a maximum term of 15 years, will be used primarily to finance Iberdrola’s orders to suppliers of turbines for offshore and onshore wind farms for Iberdrola’s projects in Spain, Poland, Greece, Germany and the UK. Offshore wind development is a key focus area for the company, with anticipated offshore wind in operation of 12,000 MW by 2030, nearly 10x the company’s current capacity, and cumulative expected investments of over €30 billion worldwide.