en.Wedoany.com Reported - EnBW Energie Baden-Württemberg AG (EnBW) has secured a $571 million (€500 million) long-term loan guaranteed by the Danish Export and Investment Fund (EIFO) to finance its share in the SuedLink power transmission project. This marks the first instance of using export credit agency (ECA)-backed financing for investment in the German power grid.
The financing has an 18-year term with amortizing repayment and is provided by an international syndicate comprising Crédit Agricole Corporate and Investment Bank (Crédit Agricole CIB), ING, and HSBC. The EIFO guarantee covers 95% of the outstanding loan amount, including interest costs. EnBW stated that the loan terms are consistent with its other euro capital market bond issuances, and the structure allows for flexible drawdowns based on project progress.
Marcel Münch, Senior Vice President of Finance, M&A, and Investor Relations at EnBW, said the company is once again breaking new ground in financing Germany's energy transition, and this €500 million loan is another key element of its long-term financing strategy. Given the sustained high investment demand for grid infrastructure, this move enables it to further diversify its financing portfolio and secure attractive long-term conditions.
SuedLink is a high-voltage direct current (HVDC) transmission line spanning approximately 700 kilometers, designed to transport renewable energy, primarily wind power, from northern Germany to the southern states of Bavaria and Baden-Württemberg. Construction has commenced across the six federal states involved, with completion targeted for the end of 2028. The project is jointly implemented by EnBW subsidiary TransnetBW and TenneT Germany, with each company responsible for different sections of the line, at a planned investment of approximately €9.62 billion. The new cable is considered crucial for Germany's transition to increasing the share of renewable energy in the national grid.
Last month, EnBW began construction of a battery energy storage system at the Philippsburg Energy Park in Germany, with a designed power capacity of 400 MW and an energy storage capacity of 800 MWh.
