The loan from European Investment Bank will provide the needed financial support to help Spanish utility, Endesa to upgrade their distribution system between 2013 and 2015. The €600 million loan will boost the utility’s liquidity position and extends the lifespan of its corporate debt. The funds will be invested in the utility’s peninsular and non-peninsular electricity distribution grid – meeting market demand and regulatory requirements. The upgrades are expected to improve energy security and compliance with safety and environmental legislation.
Endesa has allocated €1.725 billion to its distribution business, dedicating €574 million in 2013, €547 million in 2014 and €604 million in 2015. The first three years of the 15 year loan agreement will be a critical period in which the bank will provide support to help Endesa’s investments in infrastructure and will demonstrate the utility’s creditworthiness.