Milan, December 10, 2010 – European Investment Bank (EIB) and Edison SpA have finalized an agreement for a 250 million euro credit line in more tranches, which can be used within 4 years since the subscription of the contract, to finance new projects that Edison will realize through its controlled company Edison Stoccaggio Spa in order to improve natural gas storage capacity.
Edison may utilise the facility choosing at its discretion both the tenor (up to 15 years) and the pre-amortisation period (up to 4 years) for each drawdown, and either a floating or a fixed interest rate. In any case the interest rate will be determined on the basis of the EIB rate, increased by a margin. The loan is unsecured.
The credit line ensured by EIB will cover about 50% of costs estimated to convert Italian gas field already exhausted or close to be exhausted in storage fields. The San Potito e Cotignola field (Emilia Romagna Region) has already obtained the necessary authorizations and conversion works started in June 2010.
EIB’s financing will contribute to ensure a major flexibility and security in the offer and availability of natural gas in a strategic sector, thus enabling a wider capacity during the peak periods of demand and more generally the mitigation of difficulties related to the rigidity of offer. This is part of the development plan, started in 2005, to reach a storage capacity of more than 2 billion cubic metres of working gas.
The grant of a financing without guarantee shows the EIB’s recognition for the quality of Edison’s industrial project in the energy security. Beyond the importance of starting a relation with EIB for the strategic project of Edison Stoccaggio, the long term duration of the financing is for Edison a successful ingredient to pursue its investment plans in the gas storage business.
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Duty to notify the public in accordance with Consob decision no. 11971 of 05/14/1999 as amended.
