ENEL receives 350 million Euro EIB loan for investments by Enel Distribuzione
Enel Distribuzione S.p.A.
(“Enel Distribuzione”, a wholly-owned subsidiary of Enel S.p.A.) signed
an agreement with the European Investment Bank (“EIB”) for a 350
million euro loan (called “Enel Efficienza Rete III”) to cover a portion
of its investments relating to efficiency improvements in the Italian
electricity network, a project described in Enel Distribuzione’s
2012-2014 business plan.
The EIB also indicated its willingness to providing further funding for these investments up to a total of 1 billion euros.
The 20-year “Enel Efficienza Rete III” financing agreement (maturing
December 15th, 2031) has a 5-year grace period that runs until December
15th, 2016. The funds will be disbursed by the end of 2011 and secured
with a parent company guarantee provided by Enel S.p.A.
The highly-competitive loan terms include the application of a margin of 70 basis points over the Euribor for the period.
This operation, like many other similar ones, is an indication of EIB
endorsement of the validity of Enel Group's investment strategy.