Enel agrees EUR 120m in sustainability-linked financing from EIB

Enel Green Power wind power plant. Image by Enel Green Power.

December 21 (Renewables Now) - The European Investment Bank (EIB) will provide EUR 120 million (USD 135m) in "Sustainability-Linked" framework financing to Italian energy major Enel SpA (BIT:ENEL) to support its energy efficiency and renewable development goals.

Specifically, the deal will back the development of small and medium-sized renewable energy projects. These will mainly be located in certain convergence regions of Italy. EIB estimates that the projects will result in energy savings of some 19 GWh and produce some 193 GWh annually.

The financing is linked to the achievement of Enel's sustainability target to cut direct greenhouse gas emissions, or Scope 1, measured in grams of CO2eq per kWh, to equal or less than 148 gCO2eq per kWh by the end of 2023. The deal includes a step-up/step-down mechanism that will trigger a margin adjustment based on whether the target is reached.

“The ‘Sustainability-Linked’ framework financing finalized with the European Investment Bank will allow us to strengthen our commitment to the energy transition, through the development of energy production from renewable sources and energy efficiency, in line with the ‘zero emissions’ target by 2040 set out in our 2022-2024 Strategic Plan,” said Alberto De Paoli, CFO of Enel.

(EUR 1.0 = USD 1.126)

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