EIB Global provides Enel Colombia with $300 million loan for renewable energy generation and power grid improvements

WoREA Editorial Staff Member

2 months ago

· The facility finances solar photovoltaic (PV) plants totalling approximately 486 MW of capacity, and the improvement and expansion of the Enel Colombia distribution business.

· The loan is in Colombian pesos and with the help of a synthetic product neutralises exchange rate risks.

· The loan is the first of its kind to be issued by the EIB in favour of an Enel Group subsidiary.

The European Investment Bank (EIB), in partnership with Enel and SACE, the Italian Export Credit Agency, has provided Enel Group subsidiary Enel Colombia with a loan in the local currency, for a maximum amount in Colombian pesos equivalent to $300 million, which through a synthetic product neutralises the exchange rate risk. The loan is backed by a SACE guarantee. Through this facility, aimed at financing the development of power grids and renewable energy generation in Colombia, the EIB, Enel and SACE have joined forces to support the energy transition in the country and mitigate the effects of climate change.

This agreement is in line with the EU Commission’s Global Gateway Investment Agenda, and it is the first EIB framework loan exclusively dedicated to financing Enel Colombia’s sustainable development, as well as being the first EIB synthetic product with an Enel Group subsidiary.

Specifically, the facility will finance the solar PV plants Guayepo I and II, totalling approximately 486 MW of capacity, and the improvement and expansion of the Enel Colombia distribution business, which serves more than 3.7 million customers in Bogota, boosting resilience as well as enabling new connections and e-mobility, in line with the Bogotá Region 2030 project.

The agreement builds upon the EIB’s longstanding successful collaboration with Enel and SACE in Latin America which has already granted a multi-country, multi-business and multi-currency facility of up to $900 million in Latin America to Enel Group’s subsidiaries in the area.

“This project, in line with the Global Gateway Investment Agenda, contributes to reducing the infrastructure gap between wealthier and less developed regions of Colombia and increases the participation of renewable energy in the power matrix of the country by incorporating additional solar energy generation capacity. I welcome the opportunity to continue the fruitful cooperation with the Enel Group, which has a longstanding and successful relationship with the EIB and is one of its largest borrowers, and SACE, with whom the EIB also has an extensive relationship in supporting projects inside and outside the European Union,” said EIB Vice-President Ioannis Tsakiris.

“The agreement with the EIB and SACE is a virtuous example of synergies between the public and private sector and confirms our sustainability commitment,” said Enel CFO Stefano De Angelis. “This partnership adds further value to our business projects through a development strategy focused on renewables and grids, while contributing to accelerate the energy transition as well as the achievement of Sustainable Development Goals (SDGs), in line with our Group’s Strategic Plan, the Paris Agreement and the UN 2030 Agenda.”

“We are pleased to be part of this high-impact transaction, which testifies to our long-lasting partnership with Enel and the EIB and our strategic vision of long-term growth. Latin America and Colombia represent a significant opportunity for both the energy transition and the Italian technologies that can support it. Our team in Bogotá, where we have inaugurated our office in recent days, will continue to play a vital role for these projects,” stated Valerio Perinelli, Chief Business Officer at SACE.

Background information

About the EIB

The European Investment Bank is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The EIB brings the experience and expertise of in-house engineers and economists to help develop and appraise top quality projects. As an AAA-rated, policy-driven EU financial institution, the EIB offers attractive financial terms – loans at competitive interest rates and with durations aligned with the projects it finances. Through our partnerships with the European Union and other donors, we can provide grants to further improve the development impact of the projects we support.

About EIB Global in Latin America

EIB Global has been providing economic support for projects in Latin America since 2022, facilitating long-term investment with favourable conditions and offering the technical support needed to ensure that these projects deliver positive social, economic and environmental results. Since the EIB began operating in Latin America in 1993, it has provided total financing of around €14 billion to support more than 160 projects in 15 countries in the region.

About the Global Gateway initiative

EIB Global is a key partner in the implementation of the European Union’s Global Gateway initiative, supporting sound projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors. Investing in connectivity is at the very heart of what EIB Global does, building on the Bank’s 65 years of experience in this domain. Alongside our partners, fellow EU institutions and Member States, we aim to support €100 billion of investment (around one-third of the overall envelope of the initiative) by the end of 2027, including in Colombia and Latin America.

About SACE

SACE is the Italian financial insurance company specialised in supporting the growth and development of businesses and the national economy through a wide range of tools and solutions to improve competitiveness in Italy and worldwide. For over 40 years, SACE has been the partner of reference for Italian companies exporting to and expanding in foreign markets. SACE also cooperates with the banking system, providing financial guarantees to facilitate companies’ access to credit. This role has been reinforced by the extraordinary measures introduced by the so-called Liquidity Decree and by the Simplifications Decree. With a portfolio of insured transactions and guaranteed investments totalling €156 billion, SACE serves over 26 000 companies, especially small and medium businesses (SMEs), supporting their growth in Italy and in around 200 foreign markets, with a diversified range of insurance and financial products and services.

About Enel

Enel is a multinational power company and a leading integrated player in the global power and renewables markets. At global level, it is the largest renewable private player, the foremost electricity distribution network player by number of grid customers served and the biggest retail operator by customer base. The Enel Group is the largest European utility by ordinary EBITDA^[1]. Enel is present in 28 countries worldwide, producing energy with more than 88 GW of total capacity. Enel Grids, the Group’s global business line dedicated to the management of the electricity distribution service worldwide, delivers electricity through a network of 1.9 million kilometres with 69 million end users. Enel’s renewables arm Enel Green Power has a total capacity of around 64 GW and a generation mix that includes wind, solar, geothermal and hydroelectric power, as well as energy storage facilities installed in Europe, the Americas, Africa, Asia and Oceania. Enel X Global Retail is the Group’s business line dedicated to customers around the world, with the aim of effectively providing products and services based on their energy needs and encouraging them towards a more conscious and sustainable use of energy. Globally, it provides electricity and integrated energy services to around 58 million customers worldwide, offering flexibility services aggregating 9 GW, managing around 3 million lighting points, and with 27 300 owned public charging points for electric mobility.

^[1] Enel’s leadership in the different categories is defined by comparison with competitors’ FY2023 data. Fully state-owned operators are not included.

Press contacts

EIB: Enrico Possenti, e.possenti@eib.org; tel.: +352 4379 82144, mobile: +352 691 285 532
Website: www.eib.org/press – Press Office: press@eib.org