Panorama – Italy positions its public company Enel in the Latin American renewable energy market

To this end, the EIB has made available to Enel a financing framework linked to sustainability which includes a multi-country, multi-company and multi-currency financing facility of up to 600 million euros (more than 650 million dollars), backed by a guarantee from SACE. The agreement – reports Enel – represents the first operation related to sustainability of the EIB and SACE “and the largest financing of the bank to a private sector entity outside of Europe”. The Italian electricity company expects the projects financed by this mechanism to generate around 2,307 gigawatt hours of clean energy each year, which is equivalent to the annual consumption of 1.32 million homes.

As part of this agreement, Enel Green Power Perú SAC, a subsidiary of the Enel Group, received a loan of 130 million US dollars to implement solar wind and photovoltaic projects in Peru for nearly three hundred megawatts (300 MW ). The remainder of the €600 million line of financing will facilitate the growth of the Enel Group’s sustainable investments in Brazil and Colombia through renewable energy generation and energy distribution projects.

Ricardo Mourinho Félix, Vice-President of the European Investment Bank“This new agreement with Enel and SACE perfectly illustrates how the EIB intends to work through EIB Global, where partnerships are essential. It also reveals our greater commitment to promoting sustainable and green investments in Brazil, Colombia and Peru. In the At the EIB we are convinced that only by promoting the energy transition can we achieve global climate objectives while stimulating economic growth and creating new job opportunities”

Alberto De Paoli, CFO of Enel: “Together with the EIB and SACE, we are leading the transformation of international private and public finance towards a sustainability-related approach. This evolution of sustainable finance will promote long-term growth and a just transition, not only in Europe but throughout the Americas, through a synergy between private and public partners that promotes sustainable development and accelerates the achievement of global sustainability goals, in accordance with the Paris Agreement and the United Nations 2030 Agenda”

Dario Liguti, SACE Underwriting Manager: “We are proud to participate in this important project related to sustainable investments in Latin America with the collaboration and in synergy with the European Investment Bank and Enel. Thanks to the experience and know-how of more than 40 years, SACE contributes to maintaining the success of Made in Italy in complex contexts, in which the role of risk mitigation and business facilitator is essential.We are convinced that this operation will mark the way to increase our collaboration with the EIB, especially in sustainable financing”

The €600 million financing facility is tied to Enel’s ability to meet its direct greenhouse gas emissions target (Scope 1), measured in grams of carbon dioxide equivalent per kilowatt-hour (CO2eq /kWh), equal to or less than 148 gCO2eq/kWh by 2023, thus contributing to the United Nations Sustainable Development Goal (SDG) 13 (Climate Action). “Depending on the level of achievement of this objective -they explain from Enel-, the loan envisages an increase/reduction mechanism that will activate a margin adjustment”.

According to the Italian electricity company, this transaction is in line with Enel’s sustainability financing framework, updated in January 2022, “which fully integrates sustainability into the Group’s overall financing program, as well as with the EIB Climate Bank roadmap”. In addition, the framework complies with the “Sustainability-Linked Bond Principles” of the International Capital Market Association (ICMA) and the “Sustainability-Linked Bond Principles” of the Loan Market Association (LMA), verified by the Second-Provider of Vigeo Eiris services.

The company that owns Endesa
Enel, which celebrates its 60th anniversary this year, defines itself as “a multinational electricity company and a leading integrated player in the global energy and renewable energy markets”. Globally, it boasts of being “the largest private renewable energy operator, the largest grid operator by number of end users and the largest retail operator [minorista] per customer”. Enel is present in more than 30 countries worldwide and declares a total capacity of more than ninety gigawatts (90 GW). According to its company profile, Enel distributes electricity through a network of more than 2.2 million kilometers for more than 75 million end users. The main shareholder of the Enel group is the Italian Ministry of Economy and Finance.

Enel green energy, the renewable energy arm of Enel, has a total capacity of approximately 54 GW and a generation mix that includes wind, solar, geothermal and hydroelectric power, as well as energy storage facilities in Europe, in America, Africa, Asia and Oceania. Enel X Global Retail, Enel’s global advanced energy services business line, has a total capacity of approximately 7.7 GW of globally managed demand response and has installed 80 MW of storage capacity behind the counter. In addition, Enel X Way is the Group’s new global business line entirely dedicated to electric mobility, which manages approximately 320,000 charging stations for public and private electric vehicles worldwide, both directly and through partnership agreements. interoperability.

the European Investment Bank (EIB) is the long-term financing institution of the European Union and is owned by its Member States. The EIB provides long-term financing for viable investment projects to help achieve EU policy objectives, both in Europe and beyond. The EIB, which operates in some 160 countries, claims to be “the world’s largest multilateral lender for climate action projects”.

The EIB Group recently adopted its Climate Bank roadmap to deliver on its ambitious €1 trillion investment support program for climate action and environmental sustainability in the decade to 2030 and deliver more than 50 % of EIB financing supporting climate action and environmental sustainability by 2025 Additionally, as part of the roadmap, from early 2021 all new EIB Group operations will be consistent with the objectives and principles of the Paris Agreement”.

EIB Global is the new specialist arm of the EIB Group dedicated to increasing the impact of international partnerships and development finance. EIB Global was designed to foster strong and specific partnerships within the European Team, as well as other development finance institutions and civil society. EIB Global brings the Group closer to citizens, businesses and local institutions through our offices around the world.

SACE is the Italian financial insurance company, controlled by the Italian Ministry of Economy and Finance, specialized in promoting the growth and development of companies and the national economy through a wide range of tools and of solutions to improve competitiveness in Italy and in the world. For more than forty years, SACE has been the reference point of contact for Italian companies that export and develop in foreign markets.

SACE also collaborates with the banking system, providing financial guarantees to facilitate companies’ access to credit, a role that has gained more weight with the extraordinary measures introduced by the so-called decree on liquidity and the simplification decree. In fact, recent measures have extended SACE’s mandate beyond the traditional support for exports and internationalization, adding important elements such as support for companies in the national market and guarantees for ecological projects in the application of the new Italian Green Deal.

A new mandate that makes SACE an institution committed to promoting the development of the country’s system. With a portfolio of insured operations and guaranteed investments worth 166,000 million euros, SACE serves more than 33,000 companies, in particular small and medium-sized enterprises, promoting their growth in Italy and in 200 other markets. strangers.

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