The International Finance Corporation (IFC), a member of the World Bank Group, announced a €500 million green and sustainability-linked loan to ENGIE S.A., the parent company of the ENGIE Group.
This financial support aims to boost ENGIE’s renewable energy portfolio in emerging markets, advance Poland’s climate goals, and improve energy security in South Africa.
The loan, which is being co-financed by Proparco and the Asian Infrastructure Investment Bank (AIIB), has goals pertaining to occupational health and safety, the environment, and the involvement of private credit insurers that IFC has organized.
The €340 million in commercial and development capital mobilised by IFC for ENGIE enables the company to diversify and increase its funding sources.
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Valérie Levkov, the Global Industry Director of IFC said, “The partnership between ENGIE and IFC spans nearly three decades, with landmark projects across continents and sectors.”
She added, “As countries around the world face energy transition challenges, we are actively mobilising 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.”
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The loan aligns with ENGIE’s climate goals, which include phasing out coal by 2027 globally and by 2025 in Europe.
It also supports the company’s goal of increasing its portfolio of renewable energy to 80 GW by 2030 from its current 50 GW by 2025.
Additionally, it will support in the growth of 1.7 GW of renewable power by 2027, helping to avoid 3.9 million metric tons of carbon dioxide emissions (MtCO2e) per year.
This financing initiative follows IFC’s $400 million investment in ENGIE Energía Chile S.A. in 2023, which aimed to reduce Chile’s reliance on fossil fuels and aid its transition to renewable energy.