Banco Sabadell| According to press reports, Iberdrola has agreed to give Masdar (the renewable energy arm of Abu Dhabi’s sovereign wealth fund) a stake in its East Anglia 3 offshore wind project in England. The project, with a capacity of 1,400 MW, began construction in 2022 and is scheduled to run until 2026. The deal values the project at €4 billion and Masdar would acquire up to 49% for €2 billion.
Assessment: It was already known that this asset was mandated for partner search. The deal would be in line with Iberdrola’s strategy (financing growth through asset sales and strategic alliances). Although the transaction would be larger than other deals done recently (e.g. 49% Baltic Eagle also with Masdar), it would be of limited amount (up to ~3% capitalisation, 5% DFN).