News | 23 December 2025
BBVA finances the expansion of the UK power grid with a £1 billion green loan
BBVA CIB acts as Mandated Lead Arranger on a £1 billion green loan for SSEN Transmission, backed by an £800 million guarantee from the UK’s National Wealth Fund. The financing will support four strategic projects to modernise and reinforce the transmission network in the north of Scotland, a region that plays a key role in the development of the country’s renewable energy.
The green financing granted to SSEN Transmission, one of the UK’s leading electricity infrastructure companies, has featured the participation of BBVA as Mandated Lead Arranger. Backed by the UK’s National Wealth Fund, the transaction enables access to longer-term financing aligned with the lifespan of the assets, while channeling private capital into critical infrastructure that supports energy security and decarbonisation goals.
This initiative is part of the UK Government’s Clean Power 2030 Action Plan, which aims to double the deployment of electricity transmission infrastructure by 2030. Scotland, with its high concentration of wind generation, plays a key role in this objective. The deal will contribute to strengthening the transmission network in the region, enabling greater volumes of clean energy to be delivered efficiently to homes and businesses across the country.
The funds will support four strategic projects: Skye Reinforcement, Argyll and Kintyre 275kV Strategy, Orkney Connection, and the Eastern Green Link 2 (EGL2) subsea cable. The latter, developed jointly with National Grid Electricity Transmission, represents the largest single investment in grid infrastructure ever made in the UK. Together, these initiatives will connect new renewable generation zones, reinforce existing infrastructure and create or sustain around 3,400 jobs, boosting both local and national economies.
The transaction further strengthens BBVA’s collaboration with the UK public sector, marking the bank’s second operation with the National Wealth Fund, and underscores its ability to structure complex financial solutions that mobilise strategic investment.
“Working alongside the UK public sector on initiatives of this scale highlights the vital role sustainable finance can play in accelerating the energy transition. This project reinforces our commitment to the UK as a strategic market, and demonstrates BBVA’s ability to mobilise capital toward critical infrastructure that supports a cleaner, more resilient and competitive economy,” said Carlos Zuloaga, Global Sector Head of Energy in BBVA CIB.
Barry O’Regan, SSE’s Chief Financial Officer, said: “This new Bank Facility supported by the National Wealth Fund financial guarantee provides an excellent source of funding diversification, and with a three-year availability window helping to manage liquidity for SSEN Transmission. It demonstrates the importance of grid upgrades both in achieving the country’s clean power and energy security goals, and in unlocking economic growth throughout the nations and regions of Britain.”
The financing also builds on BBVA’s role as sole coordinator of SSE’s Sustainable Finance Framework, reinforcing the bank’s leadership in sustainable finance and green loans for energy infrastructure in key markets such as the United Kingdom.