The chairman of Red Eléctrica de España, Luis Atienza, and the vice-president of the European Investment Bank (EIB), Magdalena Alvarez, have today signed a loan for the sum of 200 million euros. This operation constitutes the first drawdown of a global credit line of 600 million euros granted by the EIB for the financing of the investments foreseen by Red Eléctrica de España for the 2009-2011 period, which includes the submarine electricity interconnection between the Spanish Peninsula and the Balearic Islands.
The loan for 200 million euros, formalised today, will become available over the next 3 years and has a maturity date of 18 years, in line with the extended useful life of the assets which it finances.
The credit line of 600 million euros does not include the financing of the interconnection with France, a project that will be financed directly by the EIB through Inelfe, the company jointly owned by Red Eléctrica de España and Réseau de Transport d'Électricité (RTE) and formed to develop this new electrical energy transmission axis via the eastern Pyrenees.
Since 1990 the EIB has participated in the financing of the investment projects of Red Eléctrica. This collaboration has come to fruition by means of the concession of eight lines of long term financing, for an amount superior to 1.3 billion euros. The last being for 300 million, destined to cover of the 2008-2012 investment plan.
The EIB, an institution of the European Union that offers long term financing to both public and private promoters for the development of projects which contribute to the implementation of EU policies, offers competitive conditions which adjust totally to the financial strategy of Red Eléctrica, allowing the debt maturity date to be increased, to optimize their cost and to maintain a high degree of flexibility and diversification of the same.