EIB extending EUR-250m sustainability linked loan to Spain's Endesa
Endesa team building a solar farm in Andalusia. Image by Endesa (www.endesa.com)
The European Investment Bank (EIB) is providing a EUR-250-million (USD 286.1m) sustainability linked loan to Spanish electric utility Endesa SA (BME:ELE) to support its renewables build-out in Spain, the parties announced on Friday.
The financing is tied to the condition that Endesa reduces its scope 1 direct greenhouse gas emissions. The utility company intends to use the funds to build one wind and three solar farms with a total installed capacity of 645 MW.
These projects will require a total investment of EUR 500 million, the bank and Endesa said.
The EIB loan could rise to up to EUR 700 million in the next two years, which the EU lender would direct towards co-financing Endesa’s commercial-scale solar PV and wind power projects, including the transmission infrastructure needed to connect them to the grid, according to the joint press release.
Specifically, the overall EUR-700-million framework loan is expected to be used for financing 16 solar PV projects totalling some 1.5 GWp and eight onshore wind energy projects with a combined capacity of 0.4 GW.
The portfolio development is part of Endesa’s 2021-2023 strategic plan to grow its renewable energy fleet by 30% to 11,500 MW using a total investment if EUR 3.3 billion.
Sladjana has significant experience as a Spain-focused business news reporter and is now diving deeper into the global renewable energy industry. She is the person to seek if you need information about Latin American renewables and the Spanish market.