Iberdrola has agreed to a €1 billion (£840m) green loan with Banco Santander, its largest to date, the company has confirmed.

The funds will be used primarily to finance Iberdrola’s orders of turbines for offshore and onshore windfarm projects in Spain, Poland, Greece, Germany and the UK.

In 2021, Iberdrola had an estimated 1.2GW of operational offshore wind capacity, 1.8GW which was under construction and 5.4GW in advanced development, planned to come into operation before 2027.

The Spanish electric utility said the new green loan, guaranteed by a Northern European export credit agency will help diversify the company’s sources of financing.