EIB loans Endesa €600 million for distribution grid upgrade


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.