IBERDROLA has been granted £650 million of finance by the European Investment Bank (EIB) in a deal comprising three tranches of 10-year facilities for £150 million, £300 million and £200 million, respectively.
IBERDROLA aims to use the proceeds to fund electricity distribution projects in the UK over the three-year period from 2010 to 2012, mainly to bolster the quality of supply ScottishPower currently offers its customers.
IBERDROLA’s Scottish subsidiary will focus efforts in this period on meeting demand for electricity with maximum reliability by reinforcing the structure of the network and reducing grid losses, as well as making connections available to new customers each year.
Ignacio Galán, Chairman of IBERDROLA RENOVABLES and Magdalena Álvarez, Vice-President of the EIB responsible for financing operations in Spain, Portugal and the countries covered by the Asia and Latin America mandate, signed the long-term financing agreement today in Madrid. The deal is further indication of the company’s financial health.
IBERDROLA’s relationship with the EIB dates back to the mid 1980s. Outstanding deals amount to around €2.3 billion, with funds earmarked for instance, for commissioning renewable energy facilities, strengthening electricity distribution networks and gas interconnection infrastructure, and promoting the construction of new hydroelectric facilities to cover demand during peak periods.
The EIB is the European Union’s financing institution, supporting the EU’s policy objectives. Created in 1957, its shareholders are the 27 Member States of the Union. Outside the EU, the EIB is active in over 150 countries. Power supply security and diversification in EU Member States is a key objective of the EU and, accordingly, of the EIB.
This communication does not constitute an offer of purchase, sale or exchange or a request for an offer of purchase, sale or exchange of values. The shares of Iberdrola S.A. cannot be offered or sold in the United States, except if this is carried out through a declaration of effective notification of what is laid out in the Securities Act or under the protection of a valid exemption of the need for notification.