The European Investment Bank is to loan Enel Green Power €160 million (US$233 million) to help fund the company’s development programme in Italy through 2014.
The loan, which will be spread over 20 years, will be disbursed by the end of 2012 and will be secured by one or more guarantees issued to EIB by leading financial groups.
Although neither Enel Green Power nor the EIB have released details of the loan terms, they are described as “competitive compared with the market benchmark”.
Enel Green Power is a major global operator in the field of energy generation from renewable sources, with an annual production of 22.5TW/h mainly from water, the sun, wind and the Earth’s heat. The company covers the energy consumption of over 8 million families and helps avoid 16 million tonnes of CO2 emissions every year.
A statement on the EGP website said the new loan, together with a previous €440 million loan agreement signed in 2010, underscores EIB confidence in EGP’s investments in Italy.
The investments financed by EIB are aimed at strengthening power generation from renewables by Enel Green Power in Italy through a variety of green technologies, ranging from PV to wind, from geothermal to hydro.
Enel Green Power’s development strategy relies on funding projects through cash flow generation, in combination with external funding only when the latter is long-term and competitively-priced as well as coming from reliable partners.