Endesa granted EUR-300m sustainability-linked loan for new renewables

Spanish state-owned lending institution Instituto de Credito Oficial (ICO) will extend EUR 300 million (USD 338.9m) in financing to electric utility group Endesa SA (BME:ELE) to support its renewables development and it is linking the loan conditions to sustainability criteria.

Endesa will use the funds to install 745 MW of new capacity, which will be distributed between four solar plants and one wind farm, the parties said in a joint statement on Monday. These five projects will represent a total investment of EUR 567 million, they said.

The terms of the loan will improve with the reduction of scope 1 emissions.

Endesa is committed to becoming a 100% emissions-free company by 2040. In the near term, the Spanish utility will aim to build 4,000 of new wind and solar farms and reach the end of the 2022-2024 strategic plan with a total of 12,300 MW of renewable energy capacity.

(EUR 1.0 = USD 1.13)

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