The Export and Investment Fund of Denmark (EIFO) has announced a £500 million project finance guarantee for East Anglia Three, a landmark offshore wind farm being developed by ScottishPower Renewables, a subsidiary of Spain’s Iberdrola. With a total project investment of approximately £4.5 billion, East Anglia Three is the largest offshore wind initiative in the UK in over a decade and a critical step forward in Europe’s green energy transition.

Scheduled to be operational by the end of 2026, the wind farm will be located off the coast of Suffolk and form part of the broader East Anglia wind cluster, which is expected to reach a total installed capacity of 3.8 GW. East Anglia Three alone will contribute 1,397 MW of this capacity, powered by 95 state-of-the-art 14.7 MW Siemens Gamesa turbines.

The project showcases the strength of Danish green technology and export capabilities. Offshore installation will be carried out by Cadeler, operator of the world’s largest fleet of jack-up offshore wind installation vessels, based in Denmark. In addition, Danish cable technology leader NKT will supply and install the cable infrastructure, further cementing Denmark’s role as a key player in the global energy transition.

The £500 million EIFO guarantee forms part of a £3.6 billion non-recourse project financing package arranged in partnership with 23 leading international banks. Previously, Iberdrola had financed such projects on its own balance sheet. The group’s decision to involve EIFO in this transaction marks a significant milestone in their strategic relationship, making this the first EIFO guarantee extended to an Iberdrola-owned entity.

The financing was 40% oversubscribed, reflecting strong investor confidence. Senior debt accounts for approximately 70% of the financing, with the remainder contributed by Iberdrola shareholders. The transaction is among the largest of its kind in recent years, underlining East Anglia Three’s significance in the European offshore wind sector.

Financial advisors for the transaction were Crédit Agricole CIB and MUFG, while legal advisory to the borrower was provided by A&O Shearman.

Jose Sainz Armanda, CFO of Iberdrola, commented: “This financing is highly strategic for Iberdrola. It is a project finance structure backed by 23 international financial institutions plus the significant participation of EIFO, which adds an additional level of strength. It reflects not only the quality of the project, but also Iberdrola’s ability to mobilize capital with key international players such as EIFO. This initiative will make a decisive contribution to the development of renewable generation and the electrification of the economy.”

EIFO’s involvement not only underscores its commitment to financing the global green transition but also opens new avenues for collaboration with Iberdrola on future renewable energy projects around the world.

Peter Boeskov, CCO of EIFO, commented: “This guarantee underscores EIFO’s ambition to continue advancing the buildout of green energy and contribute to European energy independence. Iberdrola is a valued partner to us in the green transition and we are delighted to be a part of the company’s first project financing. This milestone demonstrates the role export finance can play in delivering the green transition, and the need for innovative financing solutions to realize the critical projects required to reach decarbonization and energy security goals. We aim to continue this partnership and provide further financing for Iberdrola’s other projects to accelerate the global expansion of green electricity.”