November 20 (Renewables Now) - Italian grid operator Terna SpA (BIT:TRN) will get EUR 490 million (USD 542m) in debt financing from the European Investment Bank (EIB) to improve its power transmission network.
Funds from the loan facility will be allocated to support “asset renewal investments,” the EIB said on Tuesday, explaining that those investments will cover the replacement of assets and individual components, as well as the adoption of "eco-compatible" solutions protecting the environment. The goal of the planned enhancements will be to improve the reliability and quality of Italy’s electricity grid.
The debt financing will be distributed in two fixed-rate tranches, each with a maturity of around 22 years. The first one will be for EUR 147 million and will have a fixed rate of 0.717%. Its expected drawdown is in June 2020, while the second tranche drawdown is planned for March 2021. The latter will be for a total amount of EUR 343 million, at a fixed rate of 0.78%.
Following the latest loan agreement, EIB’s outstanding loans to Terna have expanded to EUR 2.15 billion, the lender said.
(EUR 1.0 = USD 1.106)