Masdar and Iberdrola Achieve Financial Close for €5.2 Billion East Anglia THREE Offshore Wind Project Masdar, a global clean energy leader, and Iberdrola, one of the world's largest energy companies, have reached financial close for the 1.4-gigawatt East Anglia THREE offshore wind farm in one of the biggest offshore wind transactions this decade. 

Project financing facilities totaling £3.6 billion (€4.1 billion) have been secured with 23 banks and the Danish Export Credit Agency (EIFO). The financing represents the largest ever by Masdar and among the biggest for offshore wind globally to date. 

The facility was oversubscribed by more than 40 percent, reflecting lenders' confidence in the project's fundamentals and the robustness of the partners.

Project Scale and Investment Details

The financing will cover a substantial part of the total project costs, estimated at approximately €5.2 billion. 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. 

Located off the Suffolk coast in the UK, East Anglia THREE will become one of the world's two largest offshore wind farms when it comes into operation in Q4 2026. The project will deliver enough clean energy to power 1.3 million British homes.

Revenue Security and Commercial Agreements

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.

Additionally, the project has secured 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 the project's lifetime. The development will be pivotal in advancing Europe's ambitious offshore wind development targets.

Strategic Partnership Context

The co-investment in East Anglia THREE marks a significant milestone in the €15 billion strategic partnership Masdar and Iberdrola signed in December 2023. This represents one of the largest ever bilateral alliances in the global clean energy sector, designed to accelerate clean energy deployment across key markets including the United Kingdom, Germany, and the United States. 

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."

Financial Institution Participation

The participating banks in the East Anglia THREE financing include BBVA, HSBC, ING, NatWest, SMBC, MUFG, Bank of China, Crédit Agricole, CaixaBank, Santander, BNP Paribas, Helaba, Barclays, ANZ, Rabobank, FAB, ICO, Abanca, Kutxabank, Standard Chartered Bank, Bank of Ireland, CIC and Siemens Bank. 

Crédit Agricole CIB and MUFG acted as financial advisors for the transaction, while A&O and Shearman served as legal advisors to the borrower. The financing was committed by 24 leading credit institutions in total, including the Danish Export Credit Agency.