Multicountry: ENGIE Sustainability Linked Green Loan

OBJECTIVE

To support the strategic expansion of ENGIE’s clean energy assets in AIIB members as part of the company's transition towards a more robust sustainability performance.

DESCRIPTION

AIIB is providing a senior corporate green and sustainability-linked loan (SLL) of EUR75 million to ENGIE (the Borrower). The loan is part of an EUR 500 million corporate financing arranged by IFC. The financing also comprises participation from the IFC’s managed co-lending portfolio program (MCPP), as well as a parallel loan from Société de Promotion et de Participation pour la Coopération Economique (Proparco).

Established in 2008 and headquartered in Paris, France, ENGIE (formerly known as GDF Suez) is one of the world’s largest energy utilities. ENGIE operates a global portfolio comprising 38 gigawatts (GW) of renewable energy (RE) assets. ENGIE’s goal is to become a leader in green energy and climate transition by investing EUR22-25 billion between 2023 and 2025 across multiple jurisdictions.

Proceeds from the loan will finance the acquisition, development, and construction of two of ENGIE’s strategic portfolios:

Poland. A portfolio of up to 213 megawatts (MW) of solar and wind assets at various development stages, that include:
- Stella Solar PV (66 Projects), 64MW, operational;
- West Poland Solar PV (7 Projects), 28MW, construction;
- Gizycko Solar PV (2 Projects), 18MW, pipeline;
- Kukinia Wind, 53MW, operational; and�
- Tychowo Wind, 50MW, operational.

South Africa. A portfolio of up to 340 MW of acquired operational solar and wind assets, which comprise:
- MBP Prieska, 60MW Solar PV, operational;
- Konkoonsies II Solar PV, 84MW, operational;
- Aggeneys Solar PV, 46MW, operational;
- Golden Valley Wind, 120MW, operational; and
- Excelsior Wind, 30MW, operational.

The SLL is supporting the energy transition of two AIIB Members. Both Poland and South Africa require substantial capital to bolster their energy systems and present above-average reliance on coal for electricity generation, as approximately 70-80 percent of their respective electricity needs are supplied by coal-fired plants.