The operation follows the 440 million euro-loan agreement from 2010 as well as underscoring EIB confidence in EGP investments in Italy
Enel Green Power SpA (“EGP”) has signed an agreement with the European Investment Bank (“EIB”), under which EIB commits to issue a loan for an overall 160 million euros. The loan is aimed at contributing to funding the development programme of EGP activities in Italy through 2014.
The 20-year loan will be disbursed by the end of 2012 and will be secured by one or more guarantees issued to EIB by leading financial groups.
The overall loan terms are competitive compared with the market benchmark.
This operation, together with the 440 million euro-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 photovoltaics 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.