EIB grants Snam a 373 million Euro loan for the development of Snam Rete Gas projects
San Donato Milanese, 10 December 2015 - Snam and the European Investment Bank (EIB) have signed a 373 million Euro loan agreement for the financing of investments promoted by Snam Rete Gas, the Group’s Company which transports gas through the national network and aims to increase the efficiency and flexibility of the Italian gas system.
This funding is part of the optimization of Snam's financial structure. It complements Snam’s existing bonds and banking facilities, and is characterized by longer duration at a competitive cost.
The funding is aimed at financing investments for an overall cost estimated at about 750 million Euro, mainly focused on reverse flow projects. Reverse flow, which are one of the key aspects of Snam's strategic plan, will enable two-way flows of gas to central and northern Europe and the European hubs, in line with the Third European Directive. It supports the development of the South-North corridor, in conjunction with the exclusivity right signed by Snam for the purchase of a 20% interest in TAP. The project falls within the list of Projects of Common Interest (PCI) at a European level and aims to increase the security and flexibility of the European gas system, facilitating the diversification of supply sources.
More specifically, the main investments in reverse flow capacity involve the construction of new compressor stations in Minerbio and Sergnano and the Cervignano-Mortara pipeline, while investments in maintenance will target several pipelines located mainly in northern Italy and the gas terminal of Mazara del Vallo.
The 373 million Euro loan will be at a floating rate and will run for 20 years.
This funding is in addition to the 324 million Euro already provided to Snam by the EIB during 2015 for projects by Snam Rete Gas and Italgas. This amounts to a total of 700 million Euro in loans granted this year, thus making Snam one of the largest Italian counterparties of the EIB.
05 August 2016 - 16:19 CEST