Multinational power giant Enel has signed a €1 billion multi-borrower and multi-currency export credit framework agreement. The financing structure is designed to fund sustainable investments tied to the group’s procurement portfolio and relationships with German suppliers. Citi acted as the sole Global Coordinator, Joint Mandated Lead Arranger, Lender, ECA Agent and Facility Agent for the transaction.
The credit line features a 95% guarantee from Euler Hermes, the Export Credit Agency of the Federal Republic of Germany. HSBC also joined the transaction, serving as the Sustainability Bank and Joint Mandated Lead Arranger. This flexible financing architecture allows various Enel subsidiaries to pull funds in both euros and US dollars to diversify funding channels.
The first transaction under the new framework has been finalised, with a tranche worth $580 million issued to borrower Enel Finance International N.V. This initial loan equates to approximately €500 million. The structure represents an innovative “shopping line” finance tool that links capital directly to corporate sustainability goals and supply chains.
Richard Hodder, Head of Export and Agency Finance at Citi, commented on the agreement: “Citi is delighted to have acted as Global Coordinator on this transaction with Enel Group and Euler Hermes. The Euler Hermes Shopping Line is an innovative financing tool, and we are proud to have delivered a solution that meets the needs of a global organisation such as Enel. This transaction is a strong example of Citi’s ability to structure and execute sophisticated cross-border financings for our clients.”
Enel operates as an integrated power producer across 27 countries with a total generation capacity of roughly 92 GW. Its renewable energy branch, Enel Green Power, manages approximately 67 GW of capacity spanning wind, solar, geothermal and hydroelectric assets. Enel Grids manages 1.9 million kilometres of power networks to serve over 69 million connected end users. The retail division, Enel Commercial, provides electricity and gas services to more than 29 million customers worldwide.
