Abu Dhabi Future Energy Company, known as “Masdar,” and Iberdrola, one of the world’s largest energy firms, have announced the successful completion of financial closure for the development of the 1.4 gigawatt “East Anglia 3” offshore wind farm in the United Kingdom. This project stands as one of the most significant deals in the offshore wind sector for this decade.
The transaction involved a financing package totaling 16.4 billion dirhams, contributed by 23 banks along with the Danish export credit agency. This arrangement marks one of the largest financing transactions in the industry and is the biggest of its kind for Masdar.
This funding will cover a substantial portion of the project’s overall cost, estimated at around 20.8 billion dirhams, with the financing representing over 40% of this total. This reflects the lenders’ confidence in the project and the stature of the partners involved.
On this occasion, Mohamed Jameel Al Ramahi, CEO of Masdar, noted that the level of interest from entities wishing to engage in the financing deal signifies the company’s prominent global position in sustainable finance and the increasing appeal of high-quality renewable energy assets capable of delivering widespread impact.
He further emphasized that this milestone signifies an important achievement in the collaboration with Iberdrola, which supports the UK’s mission to transform its energy sector and meet its clean energy objectives. Masdar looks forward to ongoing cooperation with Iberdrola to develop additional large-scale projects that will effectively contribute to shaping the future of clean energy both in the UK and beyond.
Earlier this month, Masdar and Iberdrola announced a joint investment in the East Anglia 3 project, with each company holding a 50% stake and a partnership in operating the 1.4 gigawatt facility. This project will aid in fulfilling Europe’s ambitions in offshore wind energy, situated off the coast of Suffolk, UK.
According to the announcement, once operational in the fourth quarter of 2026, it is expected to become one of the largest offshore wind farms globally, providing clean energy to approximately 1.3 million households in the UK.
The project benefits from long-term revenue guarantees through a 15-year Contracts for Difference linked to the Consumer Price Index, awarded during the UK government’s fourth and sixth auction rounds, in addition to signing a power purchase agreement with Amazon in 2024.
The project is anticipated to generate more than 2,300 job opportunities during the construction phase, along with providing around 100 permanent positions during its operational phase. The joint investment in the East Anglia 3 initiative represents a significant step within the strategic partnership worth 15 billion euros established between Masdar and Iberdrola in December 2023, regarded as one of the most prominent bilateral partnerships in the global clean energy sector, aimed at accelerating the deployment of clean energy solutions in key markets including Germany, the UK, and the USA.
The financing deal for the East Anglia 3 project includes participation from institutions such as BBVA, HSBC, ING, NatWest, SMBC, MUFG, Bank of China, Crédit Agricole, CaixaBank, and Santander.
Additionally, BNP Paribas, Helaba, Barclays, ANZ, Rabobank, First Abu Dhabi Bank, ICO, Abanca, KBC, Standard Chartered, Bank of Ireland, CIC, and Siemens Bank are involved.
Credit Agricole CIB and MUFG acted as financial advisors for the transaction, while A&O and Sherman provided legal counsel for the borrower.