Release date: 25 July 2024
Promoter – Financial Intermediary
PRYSMIAN SPALocation
Description
The loan will support part of the promoter's strategic plan to extend its production capabilities of power transmission cables at its three European plants. The project comprises new manufacturing lines for submarine extra high voltage cables, new lines for onshore high-voltage cables and multiple upgrades on a line for onshore high-voltage cables.
Additionality and Impact
In order to meet the climate goals, almost 500 gigawatts of generation capacity will be deployed across the European Union and neighboring countries, like the UK and Norway. According to Europe's association of transmission system operators (ENTSO-E) those targets will require up to 54,000 kilometers of additional transmission lines. The demand exceeds the capacity of the supply chain and lead time for construction has increased due to the capacity to manufacture and deliver.
The Promoter is a world-leading manufacturer in its field and the proposed Project is part of its strategic plan to extend production capabilities of state-of-the-art power transmission cables.
By financing this Project, the EIB will contribute to speeding up the construction of grid connection schemes for offshore windfarms and thereby supporting EU's Green Transition and the Bank's lending to offshore wind generation.
The proposed EIB loan satisfactorily meets the required funding needs of the Promoter as it is adequately sizeable and with sufficient long tenor for the expected investments, also providing the necessary flexibility in terms of drawdowns, in such a way that is not easily replicable on the financial markets. Furthermore, the EIB loan is expected to significantly improve the Promoter's maturity profile and the overall diversification of its funding sources.
Objectives
The aim is to meet the growing demand in the renewable energy sector, in particular for offshore wind, by expanding the promoter's capabilities in manufacturing "state-of-the-art" power transmission cables. As such, it supports the green transition and continued growth of renewable energy generation.
Sector(s)
- Industry - Manufacturing
Proposed EIB finance (Approximate amount)
EUR 450 million
Total cost (Approximate amount)
EUR 614 million
Environmental aspects
The activities are not specifically mentioned in either Annex I or Annex II of the EIA Directive 2011/92/EU amended by Directive 2014/52/EU, but fall under urban development and are subject to screening. The different investment schemes have been subject to screening by the competent authorities in Finland, France and Italy. Most schemes have been screened out for requiring an EIA, the screening for the remaining is ongoing.
Procurement
The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions.
Status
Signed - 24/07/2024
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).