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The Asian Infrastructure Investment Bank (AIIB) has announced a commitment of €75 million to a €500 million sustainability-linked green loan facility aimed at supporting ENGIE’s global renewable energy portfolio expansion and decarbonization efforts.
The ENGIE Sustainability Linked Green Loan Project is co-financed by the International Finance Corporation (IFC) and Société de Promotion et de Participation pour la Coopération Economique (Proparco). This marks AIIB’s second collaboration with ENGIE, following its earlier financing of the 400 MW Gujarat Solar Project earlier this year.
AIIB, along with IFC and Proparco, will provide the green sustainability-linked loan facility to enhance ENGIE’s clean energy assets in Poland and South Africa, both of which are AIIB member countries. The funds will facilitate the acquisition, development, and construction of over 550 MW of installed capacity. In line with sustainability-linked principles, the loan’s remuneration will be tied to ENGIE’s performance in greenhouse gas emissions reduction, renewable energy expansion, and occupational health and safety.
“This project reinforces AIIB’s global mandate, strong partnerships, and innovative focus on climate finance,” stated Najeeb Haider, AIIB Director General for Project and Corporate Finance Clients. He emphasized AIIB’s unique position to support multinational energy groups like ENGIE in advancing the energy transition across Asia and beyond.
With this loan, AIIB aims to leverage ENGIE’s leadership in green energy and climate transition to support its member countries. ENGIE has set a goal to invest between €22 billion and €25 billion in renewable energy and low-carbon energy solutions from 2023 to 2025. These initiatives align with AIIB’s Energy Sector Strategy, which promotes support for traditional energy companies as they adjust their corporate strategies toward the energy transition.
Jean-Marc Turchini, Group Head of Corporate Finance at ENGIE, remarked, “To accelerate the energy transition, considerable resources and efforts are needed from many stakeholders.” He expressed gratitude for AIIB’s financing and highlighted the innovative structure of the loan, which incorporates climate-related targets for scope 3 emissions and health and safety performance indicators for ENGIE employees and subcontractors across all sites, reflecting ENGIE’s sustainability and social ambitions. |
