The European Investment Bank has granted Endesa S.A. a EUR 600 million loan for upgrading and expanding its distribution network in Spain. The loan agreement for the first EUR 300 million installment was signed in Madrid.
The funds will be used to finance part of Endesa’s 2013-2015 strategic investment plan and will be principally aimed at taking forward the modernization of the company’s power distribution networks. The investment schemes are located in Andalusia, Aragón, Catalonia, the Balearic Islands and the Canary Islands.
The company will use the loan to finance upgrading of its peninsular and non-peninsular electricity distribution grid in order to meet market demand and new regulatory requirements. It will improve the quality of the grid and the security of supply in accordance with prevailing safety and environmental legislation.
The EIB loan will help to improve the efficiency of the company’s distribution activities by reducing power losses and increase the network’s capacity to satisfy the demand from new customers.
This operation meets the EIB’s and EU’s priority objective of achieving a reliable, competitive and secure energy supply – which is key to the smooth functioning of the economy.