Add us as your preferred source on Google to see more of our content in Search.
Add to Preferred SourcesTerna and the European Investment Bank (EIB) signed an agreement for a EUR 490 million loan to support investments that will improve the reliability and quality of the electricity grid.
For the first time in the history of the relationship between Terna and the EIB, the loan will be allocated to support “asset renewal investments”. This includes assets and individual components replacement, as well as the adoption of the most advanced solutions in terms of eco-compatibility with the host environment. This disbursement will bring the EIB outstanding loans to Terna to EUR 2.15 billion.
Dario Scannapieco, Vice-President of the EIB, said: “This operation confirms the commitment of the European Union’s bank in upgrading the crucial sector of electricity grids. It also further strengthens the EIB’s fruitful partnership with Terna: in the last few years, the bank has supported the company’s key investment plans in transmission-grid modernisation and development and in cross border high-quality projects such as the Italy-France interconnection. With this new loan our ongoing financial commitment with Terna exceeds a total of two billion euro”.
The loan, which has a longer-term and lower costs than those available on the market, is part of Terna’s financial structure optimization policy and is coherent with the EIB’s main financing activities in the energy and environmental field.
The loan will be disbursed in two fixed-rate tranches, each with a maturity of around 22 years. The first tranche drawdown is expected in June 2020 for a total amount of EUR 147 million, with a fixed rate of 0.717%, the second tranche drawdown is expected in March 2021 for a total amount of EUR 343 million and a fixed rate of 0.78%.
Original source: EIB
Published on 19 November 2019