Iberdrola extends a green loan with the EIB by 220 million to promote smart grids in Spain

MADRID, 3 Oct. (EUROPA PRESS) -

Iberdrola and the European Investment Bank (EIB) have agreed on a €220 million extension of the green loan signed in 2021 to support the development, modernization and digitization of the company's electricity distribution networks, a project with an impact in twelve Spanish regions, informed both organizations.

In this way, the financing rises to a total of 820 million euros, some funds allocated to the infrastructure investment plan of i-DE, the Iberdrola distributor.

Specifically, the project linked to the loan will allow an improvement in the efficiency of the distribution network, which is increased thanks to automation and control.

In addition, with this loan, the group chaired by Ignacio Sánchez Galán will promote the recovery of the economy and employment in Spain, by allowing the maintenance of some 10,000 jobs per year in Spain during the implementation period, according to EIB estimates.

Likewise, this loan supports the cohesion and regional development objectives of the EU financial institution, which prioritizes the promotion of projects in less developed regions with a Gross Domestic Product (GDP) per capita below the EU average. In this sense, 68% of the i-DE plan contemplated in this agreement is carried out in these Spanish regions.

This agreement favors the development of the smart grid investment plan being developed by Iberdrola's distributor in Spain, in the 2021-2023 period, and which represents a total investment of 1,800 million euros.

The chairman of Iberdrola, Ignacio Sánchez Galán, stated that this new operation with the EIB will allow the energy company "to further develop smart grids in Spain, which are essential to facilitate the integration of renewable energy production, promote energy efficiency and improve the distribution network and the quality of supply".

"With this we will be able to speed up the transition towards a more sustainable model, helping to provide greater self-sufficiency and energy security, which are so necessary at a critical time like the current one," he added.

For his part, the vice president of the EIB, Ricardo Mourinho Félix, considered that the expansion of this financing "is even more important as it is framed in a period of energy crisis."

"At the EIB we know that it is essential to strengthen the electricity grids in order to see renewable energies grow, vital to ensure security of supply and decarbonize the EU economies. The extension of this green loan with Iberdrola is one more step towards this objective, and it also does so by translating into economic growth and employment in Spain", he said.

In terms of the environment and energy, this operation is in line with the EIB's 'Climate Roadmap' and with the strategy of the EU's REPowerEU plan. The additional resources that Iberdrola will receive will facilitate the execution of the company's strategic plan, focused on investments in renewable energies and networks, two of REPowerEU's priorities.

The EU Bank develops this operation through a green loan, a type of financing whose characteristics fully comply with the requirements defined in the EIB program of Climate Awareness Bonds (CAB for its acronym in English). Therefore, the transaction is likely to be assigned to its portfolio of loan operations financed through the issuance of said bonds.