Iberdrola SA secured a €400 million green loan from Spain's Instituto de Crédito Oficial.
The loan will be used to fund the company's Tâmega pumped hydropower project, which includes developing three new facilities totaling an output of 1,158 MW in Portugal. Of the total, 880 MW will be pumped storage technology.
The loan has a 12-year maturity period and a two-year grace period for principal, according to a May 30 release, which described the financing as the largest green loan ever granted by the Instituto de Crédito.
Iberdrola will also contribute €50 million through the project to support the community with the help of local municipalities, which includes a €1.84 million investment in an archaeological project to recover the Roman gold mine of Tresminas.
Independent agency VigeoEiris certified the loan.
Iberdrola plans to invest €13.3 billion from 2018 through 2022.