IFC Backs ENGIE With Green Loan To Accelerate Renewable Energy Expansion

10/4/2024 8:07:56 AM

(MENAFN- Trend News Agency) BAKU, Azerbaijan, October 4. The International Finance Corporation (IFC), a member of the World bank Group, has unveiled a landmark €500 million (approximately $534 million) green and sustainability-linked loan to ENGIE S.A., the parent company of the ENGIE Group, Trend reports via the IFC.

This financing initiative is set to accelerate ENGIE's renewable energy growth in emerging markets while supporting decarbonization efforts in Poland and strengthening energy security in South Africa through clean energy solutions.

The loan comes with ambitious climate goals and innovative occupational health and safety commitments. It is co-financed by the Asian Infrastructure Investment Bank (AIIB) and Proparco, a French development finance institution. In addition, IFC is mobilizing €340 million in commercial and development capital from seven private credit insurers, marking IFC's largest-ever credit insurance mobilization for a single client.

ENGIE's decarbonization strategy, supported by the loan, includes the complete phase-out of coal in continental Europe by 2025 and globally by 2027. The company also aims to build a renewable energy portfolio of 50 gigawatts (GW) by 2025 and 80 GW by 2030. This financing will facilitate the development of 1.7 GW of renewable energy capacity by 2027, which is expected to prevent approximately 3.9 million metric tons of carbon dioxide emissions annually.

The deal builds on a previous $400 million loan from IFC to ENGIE Energía Chile S.A. in 2023, aimed at transitioning Chile's national electric grid from fossil fuels to renewable power sources, further supporting global efforts to combat climate change.

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