Nine international and U.S.-based banks, including Santander CIB, committed approximately $2.3 billion of debt to finance the construction and operation of the project
Santander Bank, N.A. (“Santander Bank” or “Santander”) today announced that its Corporate & Investment Banking division (“Santander CIB”) has acted as financial advisor, joint lead arranger, administrative agent and green loan coordinator for the financing of Vineyard Wind 1, the first large-scale offshore wind farm in the United States. Santander is one of nine international and U.S.-based banks raising approximately $2.3 billion of senior debt to finance the construction of the project.
Vineyard Wind is a joint venture between Avangrid Renewables, a subsidiary of AVANGRID, Inc. (NYSE: AGR), part of the Iberdrola Group, and Copenhagen Infrastructure Partners (CIP). Vineyard Wind 1 is an 800 MW project located 15 miles off the coast of Martha’s Vineyard and will be the first large-scale offshore wind project in the United States. The project is expected to generate electricity for more than 400,000 homes and businesses in the Commonwealth of Massachusetts, save ratepayers $1.4 billion over the first 20 years of operation and is expected to reduce carbon emissions by more than 1.6 million tons per year.
Onshore construction for Vineyard Wind 1 will begin this year, with first power from Vineyard Wind 1 expected to be delivered to the grid in 2023.
“Santander is extremely proud of our advisory capabilities in renewable energy, in particular offshore wind, and appreciate the opportunity to advise Avangrid and CIP in this landmark transaction that is so critical to Massachusetts and U.S. climate goals,” said Marco Antonio Achón, Head of Santander Corporate & Investment Banking U.S.
“Santander is very proud to have advised in the financing of the first large-scale offshore wind project in the U.S.,” said Pablo Urgoiti, Head of Global Debt Financing U.S. for Santander CIB. “Renewable financing is a cornerstone of our product offering and we are glad that our cumulative global experience in offshore wind has been there to support this process.”
Santander CIB has become a leader in renewable energy finance and advice owing to its efforts to seek solutions in environment, social and corporate governance (ESG) and other areas to help customers transition toward more sustainable models and a less polluting economy. Santander is committed to leading the way in environmentally responsible financing and advisement for projects that add value to society while helping fight climate change and pollution, and protecting natural resources.
Santander CIB is a global division that supports corporate and institutional clients, offering tailored services and value-added wholesale products suited to their complexity and sophistication. Our coverage model combines local knowledge with global expertise of industry sectors of our clients. For more information, please visit https://www.santandercib.com/.
Santander Bank, N.A. is one of the country’s largest retail and commercial banks with $89.5 billion in assets. With its corporate offices in Boston, the Bank’s approximately 9,200 employees and more than 2 million customers are principally located in Massachusetts, New Hampshire, Connecticut, Rhode Island, New York, New Jersey, Pennsylvania and Delaware. The Bank is a wholly-owned subsidiary of Madrid-based Banco Santander, S.A. (NYSE: SAN) - one of the most respected banking groups in the world with 150 million customers in the U.S., Europe, and Latin America. It is overseen by Santander Holdings USA, Inc., Banco Santander’s intermediate holding company in the U.S. For more information on Santander Bank, please visit www.santanderbank.com.