London: Masdar, a global clean energy leader, and Iberdrola, one of the world’s largest energy companies, today announced they have reached financial close for the 1.4-gigawatt (GW) East Anglia THREE offshore wind farm, in one of the biggest offshore wind transactions this decade.
According to Emirates News Agency, project financing facilities totaling £3.6 billion (pound 4.1 billion) have been secured with 23 banks and the Danish Export Credit Agency (EIFO), marking the largest such transaction in the sector and the largest ever by Masdar. This financing will cover a substantial part of the total project costs, estimated at approximately pound 5.2 billion.
The financing facility was oversubscribed by more than 40 percent, demonstrating lenders’ confidence in the project’s fundamentals and the strength of the partners involved.
Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, stated, “The level and profile of investor interest in this financing deal – the largest we have ever signed at Masdar – reflects our position as a global leader in sustainable finance and investor appetite for high-quality renewable energy assets that deliver impact at scale. Today’s announcement represents a significant step forward in our partnership with Iberdrola – and in the UK’s clean energy journey, supporting the nation in meeting its energy transformation objectives. We look forward to collaborating further with Iberdrola on other gigawatt-scale greenfield projects that will help shape the future of clean energy in the UK and beyond.”
Masdar and Iberdrola announced their co-investment in East Anglia THREE this month, with each party taking a 50 percent stake and having co-governance of the 1.4GW asset, which will play a critical role in advancing Europe’s ambitious offshore wind development targets.
Located off the Suffolk coast in the UK, East Anglia THREE is set to become one of the world’s two largest offshore wind farms when it becomes operational in Q4 2026. It will deliver enough clean energy to power 1.3 million British homes.
The project benefits from long-term revenue security through a 15-year CPI-linked Contract for Difference (CfD) awarded in the UK Government’s AR4 and AR6 auctions, as well as a Power Purchase Agreement (PPA) with Amazon signed in 2024. Over 2,300 jobs are expected to be created during construction, with 100 long-term roles supported across its lifetime.
The co-investment in East Anglia THREE marks a significant milestone in the pound 15 billion strategic partnership Masdar and Iberdrola signed in December 2023. It is one of the largest ever bilateral alliances in the global clean energy sector, aimed at accelerating clean energy deployment across key markets, including the United Kingdom, Germany, and the United States.
The participating banks in the East Anglia THREE financing include BBVA, HSBC, ING, NatWest, SMBC, MUFG, Bank of China, Cr©dit Agricole, CaixaBank, Santander, BNP Paribas, Helaba, Barclays, ANZ, Rabobank, FAB, ICO, Abanca, Kutxabank, Standard Chartered Bank, Bank of Ireland, CIC, and Siemens Bank.
Cr©dit Agricole CIB and MUFG acted as financial advisors for the transaction, and AandO and Shearman served as legal advisors to the borrower.