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Iberdrola, the Spanish energy powerhouse, Europe's leading electricity company, and the world's second-largest by stock market value has received €300 million (US$328.7 million) from the World Bank's private sector investment arm, the International Finance Corporation. The goal is to establish renewable projects in nations that rely on fossil fuels, particularly coal including Poland, Morocco, and Vietnam. Iberdrola stated that €170 million had already been committed to financing onshore wind projects in Poland. Iberdrola also has ideas about the ways it could collaborate with the IFC to develop offshore wind and green hydrogen in other emerging economies.
Iberdrola's director of finance, control, and corporate development, José Sainz Armada, stated, "This loan will allow Iberdrola to continue advancing the energy transition, decarbonisation, and electrification of developing nations that are still heavily reliant on fossil fuels."
"It also consolidates IFC as one of our major allies in the financing of renewable projects." The IFC, which carries an AAA credit rating, is the World Bank Group's financial services arm in over 100 emerging nations, allowing them to enhance their private sectors via investment.
The €300 million loan package is based on Iberdrola addressing two environmental, social, and corporate governance (ESG) goals: reducing definitive and direct greenhouse gas emissions by more than 60% from 2020 levels across its value chain by 2030, and more than doubling its installed renewables capacity by 2030. The grant follows two earlier green loans related to sustainability targets delivered to Iberdrola, one of $155 million in May 2023 and another of $115 million in July 2022, both to Iberdrola's Brazilian branch, Neoenergia.
"This loan is a significant step in the global IFC-Iberdrola Energy Transition Partnership, which aims to support Iberdrola's expansion and re-entry into emerging markets in need of decarbonising their energy matrix," said Alfonso García Mora, Vice President for Europe, Latin America and the Caribbean at IFC. "We look forward to collaborating with Iberdrola on projects that can accelerate a just and equitable transition to a low-carbon and sustainable energy future across developing and emerging markets."
Read more here- https://www.iberdrola.com/press-room/news/detail/iberdrola-and-the-world-bank-extend-their-partnership-with-a-300-million-green-loan-for-renewable-projects-in-emerging-countries
