Iberdrola Financiación, S.A.U. is wholly owned by Iberdrola, S.A., which is publicly listed on the Spanish Stock Exchange with no individual shareholder owning more than 10% of the company’s shares. Iberdrola is Europe’s largest electricity utility by market capitalization, and the second largest in the world. With a focus on renewable energy, smart networks and smart solutions for customers, Iberdrola has over 60GW of installed power capacity, over 1.2 million kilometers of transmission lines in operation and over 36 million customers. Iberdrola’s main markets are in Europe, the US, and Latin America.

The proposed IFC investment is in the form of an A loan for IFC’s own account in the amount of up to €300 million. The loan is expected to be committed in several tranches: (i) a first tranche of up to €[150] million for three onshore wind assets in Poland; and (ii) additional tranches of up to €[150] million for other renewable energy projects in emerging markets, such as Morocco and Vietnam, which can comply with IFC’s Performance Standards and meet defined eligibility criteria. The green loan will include sustainability targets including the reduction of absolute greenhouse gas emissions.

IFC’s investment will be earmarked to eligible renewable energy projects in Poland, Morocco, Vietnam and other emerging markets.

This is a Category A project as per IFC's Policy on Environmental and Social Sustainability, as the project activities have the potential to cause significant adverse E&S risks and/or impacts that are diverse, irreversible, or unprecedented. The proposed investment could involve the development of large-scale onshore wind and solar energy sub-projects in countries with high levels of biodiversity and which lack robust regulatory frameworks relating to aspects including biodiversity management, workers' rights and conditions, and land acquisition.

Key E&S aspects associated with the project are (i) adequacy of E&S assessments in line with IFC PSs; (ii) E&S capacity and ability to screen potential sub-projects suitability against E&S criteria; (iii) corporate and project-specific ESMS and review of sponsor's performance at the sub-project level; (iv) contractor E&S management; (v) labor and working conditions; (vi) noise and vibration; (vii) supply chain; (viii) land acquisition; (ix) potential biodiversity impacts; (x) cumulative impacts; (xi) stakeholder engagement and community grievance mechanism; (xii) potential for indigenous peoples (IPs) (Vietnam).