This is the first financial operation with bank guarantees and letters of credit for sustainable purposes carried out by Banco Sabadell in Spain.
Sabadell Herrero and the Asturian company Windar Renovables have reached a sustainable finance agreement worth 41.5 million euros, within the framework of the Vineyard Wind project, which will supply the foundations for the largest offshore wind farm in the United States. This is the first sustainable financial operation carried out with bank guarantees and letters of credit by Banco Sabadell in Spain.
The agreement was reached both because it is a renewable energy project, and therefore sustainable, and because the financial instruments provided by Sabadell Herrero are also sustainable. It is the first operation of these characteristics carried out by the entity. It involves 18.5 million euros in bank guarantees and 23 million euros in letters of credit to purchase the raw materials for the project. The signing took place at the headquarters of Sabadell Herrero in Oviedo, between Orlando Alonso, Executive Chairman of Windar, and Pablo Junceda, Deputy General Manager of Banco Sabadell.
The Aviles-based company Windar Renovables (Daniel Alonso Group) is taking part in the project developed by the Joint Venture formed by Avangrid (Iberdrola Group) and Copenhagen Infrastructure Partners (CIP) – for an overall amount of approximately 160 million euros, supplying the 62 Transition Pieces that make up the project.
For its part, Sabadell Herrero has made sustainable finance part of the bank’s core business, which means that environmental, social and good governance factors are taken into account in the investment decision-making process, as in the case of the project in which Windar Renovables is taking part. This operation is part of the objectives of “Sabadell Sustainable Commitment” with the aim of accelerating the transition to a low-carbon economy, reinforcing customer support by providing sustainable finance solutions with the funding of more than €65 billion until 2025.
Vineyard Wind 1, the first large-scale offshore wind farm in the United States, will be 25 times larger in size than the only existing facility of its size in the country, located in Rhode Island (whose towers were also supplied by Windar in 2014). The project, with an installed capacity of 800 MW, will generate clean, renewable and affordable energy for more than 400,000 homes, while reducing carbon emissions by more than 1.6 million tonnes per year. It will install 62 wind turbines covering an area of 675 km2.