Spanish utility Iberdrola has secured a €200m loan from the European Investment Bank (EIB) for the modernisation of its electricity distribution network.

Iberdrola said the EIB loan will support its investment programme on its grid in Spain for 2011.

The programme includes construction of a large number of electricity distribution facilities in different voltages, as well as the installation of smart meters.

The project aims to expand and improve Iberdrola´s electricity distribution infrastructure in order to increase safety, reliability and efficiency of energy supply,