ANNOUNCEMENT 18 Nov 2020

In November 2020, the European Investment Bank (EIB) and Engie signed a EUR 466 million (approx. USD 516 million) loan to finance the company’s optimisation activities of its heat/cooling network.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

European Investment Bank. Financed projects. ENGIE SOLUTIONS DHC NETWORKS. 18/11/2020. Available at: https://www.eib.org/en/projects/loans/all/20190725

European Investment Bank. Projects to be financed. ENGIE SOLUTIONS DHC NETWORKS. 07/05/2020. Available at: https://www.eib.org/en/projects/pipelines/all/20190725

European Investment Bank. Environmental and Social Data Sheet. ENGIE SOLUTIONS DHC NETWORKS. 28/08/2020. Available at: https://www.eib.org/en/registers/all/130328695

European Fund for Strategic Investments – EFSI. ENGIE SOLUTIONS DHC NETWORKS. 22/09/2020. Available at: https://www.eib.org/en/scoreboards/all/133267598

Engie. Who we are. Available at: https://www.engie.com/en/group/who-we-are

Inception date: 18 Nov 2020 | Removal date: open ended

State loan

On 18 November 2020, the European Investment Bank (EIB) and Engie signed a EUR 466 million (approx. USD 516 million) loan to finance the company’s optimization activities of the heat/cooling network. The same day, they signed the first loan tranche for the amount of EUR 250 million (approx. USD 276.8 million). 

The project aims to rehabilitate, extend and develop the district heating and cooling networks and heat generation facilities during the period 2020-2024. Particularly, it will include the construction of biomass incinerators, geothermal plants, the refurbishment of heat distribution pipes, and the extension of pipeline networks.

Engie is a French-based energy and service company with a focus on electricity generation and energy infrastructure as well as customer services. According to its website, the company is committed to accelerating the transition to a carbon-neutral economy. It counts with over 170 000 employees and it operates in 70 countries. 

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support granted here is discriminatory.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
Inception date: 18 Nov 2020 | Removal date: open ended

Loan guarantee

The EIB's approved loan to Engie, signed on 18 November 2020, was also backed by the European Fund for Strategic Investment (EFSI). The loan was for the amount of EUR 466 million (approx. USD 516 million) loan and it aimed to finance the company’s optimization activities of the heat/cooling network.

The EFSI is a joint initiative by the EIB and the European Commission to promote investment in Europe, acting as the main pillar of the Investment Plan for Europe. It provides first-loss guarantees enabling the EIB to invest in more and often riskier projects. The loan described above was issued under the EFSI and thus benefits from a full guarantee through the EU budget.

EFSI support does not fall under EU State Aid rules as it is meant as a tool to address "market failures or sub-optimal investment situations". However, the investment support does include favourable conditions in the form of public assumption of risk.

 
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