East Anglia THREE Offshore Wind Farm Secures £3.6bn in Financing for 1.4GW Project

Masdar and Iberdrola secured $4.87bn in financing for the 1.4GW East Anglia THREE offshore wind farm in the UK. The project will generate clean power for 1.3 million homes and create 2,300 construction jobs. The funding includes contributions from 23 banks and Denmark's Export Credit Agency. East Anglia THREE benefits from long-term revenue security through a CfD and PPA.

Masdar and Iberdrola have successfully secured $4.87bn in financing for the development of the 1.4GW East Anglia THREE offshore wind farm in the UK. The project, which will be situated off the Suffolk coast, is expected to become operational by the fourth quarter (Q4) of 2026.

The funding package, which includes contributions from 23 banks and Denmark’s Export Credit Agency (EIFO), will cover a substantial portion of the total project costs estimated to be €5.2bn [1]. This financial close represents one of the largest offshore wind transactions of the decade and the largest ever secured by Masdar.

The East Anglia THREE project is anticipated to generate sufficient clean power for 1.3 million British homes while supporting over 2,300 construction jobs and maintaining 100 long-term positions throughout its lifespan. The project benefits from long-term revenue security through a Consumer Price Index-linked contract for difference (CfD) awarded by UK government auctions AR4 and AR6, as well as a power purchase agreement (PPA) signed with Amazon in 2024 [1].

Mohamed Jameel Al Ramahi, CEO 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" [1].

The banks involved in the financing of the project include BBVA, HSBC, Santander, BNP Paribas, and Siemens Bank [1, 2]. Financial advisors for the transaction were Crédit Agricole CIB and MUFG, while A&O and Shearman provided legal counsel to the borrower [2].

The co-investment in East Anglia THREE aligns with a broader €15bn strategic partnership between Masdar and Iberdrola, established in December 2023, to expedite clean energy initiatives across key markets including Germany, the UK, and the US [3]. This partnership underscores the commitment of both companies to advancing clean energy solutions and meeting ambitious renewable energy targets.

References:
[1] https://www.power-technology.com/news/east-anglia-three-offshore-wind-financial-close/
[2] https://www.zawya.com/en/business/energy/masdar-iberdrola-achieve-financial-close-for-61bln-east-anglia-three-offshore-wind-project-a3ln8601
[3] https://www.solarpowerportal.co.uk/green-hydrogen/iberdrola-masdar-unveil-12-billion-offshore-wind-and-hydrogen-partnership