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”, says EIB.
The European Investment Bank (EIB) and Rome based tansmission system operator Terna on 19th November signed an agreement for a € 490 million loan to support investments that will expand 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,” the EIB said in a statement.
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, said EIB.
This disbursement will bring the EIB outstanding loans to Terna to EUR 2.15 billion, the EIB added.
The EIB further said, 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%.