By Pierre Bertrand


Iberdrola received 500 million euros ($544.5 million) from the European Investment Bank to help the electric utility expand its electricity distribution grid in Spain.

The amount is an initial tranche of a larger EUR700 million loan allocation agreed on Monday by the bank, designed to help finance the development and expansion of smart power grids, it said.

The funds will also help with work to facilitate the integration of renewable energy sources, the bank said.

Iberdrola is planning to invest EUR1.44 billion for the effort, of which EUR740 million will by provided by the company.

The approved funds help support the European Union's REPowerEU plan, which aims to reduce the bloc's dependence on fossil fuel imports, notably from Russia following its attack on Ukraine, the investment bank said.


Write to Pierre Bertrand at pierre.bertrand@wsj.com


(END) Dow Jones Newswires

03-18-24 1004ET