The International Finance Corporation (IFC), a member of the World Bank Group, has announced a landmark green and sustainability-linked loan of €500 million ($534 million) to ENGIE S.A., the parent holding company of the ENGIE Group.

IFC said in a statement on last Thursday that the financing aims to bolster ENGIE’s efforts to expand its renewable energy portfolio in emerging markets and decarbonize its activities.

It is also designed to advance Poland’s decarbonization goals and enhance energy security in South Africa by promoting clean and sustainable energy solutions, it added.

According to the statement, the loan includes ambitious climate targets as well as innovative occupational health and safety commitments.

It is co-financed with two other development finance institutions, the Asian Infrastructure Investment Bank (AIIB) and Société de Promotion et de Participation pour la Coopération Economique (Proparco).

In addition, IFC is mobilizing capital from seven private credit insurers, making this IFC’s largest ever credit insurance mobilization for a single client.

Combined, the €340 million ($373 million) in commercial and development capital mobilized by IFC for ENGIE enables the company to diversify and expand its funding sources.

“The partnership between ENGIE and IFC spans nearly three decades, with landmark projects across continents and sectors,

“As countries around the world face energy transition challenges, we are actively mobilizing private capital and deepening our strategic ENGIE-IFC partnership so the company can further invest in clean, affordable, and reliable energy that is accessible to all, paving the way for a greener, more resilient future,” said Valérie Levkov, Global Industry Director, IFC.

According to the statement, the new loan is structured with specific sustainable performance objectives in alignment with the company’s climate targets, including ENGIE’s commitment to phase out coal by 2025 in continental Europe and by 2027 worldwide.

ENGIE also aims to achieve a 50 GW portfolio of renewable projects by 2025 and an 80 gigawatts (GW) portfolio by 2030, significantly contributing to climate change mitigation.

By facilitating the development of 1.7 GW of renewable energy capacity by 2027, the new loan will help avoid approximately 3.9 million metric tons of carbon dioxide equivalent (MtCO2e) per year.

“To accelerate the energy transition, considerable resources and efforts are needed from many stakeholders,

“Our partnership with IFC is certainly a meaningful contribution and we feel grateful for what they achieved with this financing,” said Adrien Koenig, Group Head of Structured Finance, ENGIE.

He said the firm is also proud to highlight the innovative structure of this most recent corporate loan, which includes climate-related targets for scope 3 emissions and a health and safety performance indicator that covers ENGIE employees and subcontractors on all sites, reflecting ENGIE’s sustainability ambitions.

According to the statement, the loan builds on IFC’s $400 million financing for ENGIE Energía Chile S.A. in 2023, which will boost the supply of clean energy to the country’s national electric system by supporting a shift from fossil fuel-based power generation to renewable power.

The partnership with ENGIE underscores IFC’s commitment to advancing green energy solutions and supporting sustainable infrastructure development.

By driving the adoption of renewable energy technologies and promoting low-carbon growth, IFC enables scalable and replicable solutions that accelerate the global energy transition, said the statement.

IFC is the largest global development institution focused on the private sector in emerging markets.

The organization works in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries.

In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet.

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