BPIFRANCE RENEWABLE ENERGY FRAMEWORK LOAN

Promoter – Financial Intermediary

BPIFRANCE

Location

• France

Description

The framework loan with Bpifrance will mainly support private companies implementing small and medium-sized renewable energy projects in France.

Additionality and Impact

EIB's intervention will take the form of a funding line to BPIFRANCE to support the development of the renewable energy sector in France. BPIFRANCE will on-lend the EIB funds at attractive financing conditions to eligible projects, thereby facilitating their implementation. 

The project is expected to bring about economic and social benefits by generating clean and renewable power at a cost well below the fossil fuel-based alternatives. In addition, the project will support the economic recovery in the context of the current economic turmoil and energy crisis, fostering economic growth and qualified employment in the green sectors.

The RE projects are expected to benefit from market-based instruments, and thereby contribute to the policy objective to support the market integration of renewable energy projects.

The financing of this project is in line with the Bank's lending priority objectives on Energy (Renewable Energy) as well as the transversal objectives on Climate Action (mitigation), Environmental Sustainability (Pollution Prevention Control) and Social and Economic Cohesion.

The financing contributes to France's 2030 decarbonisation goals. The operation supports the production of electricity from low carbon sources, and addresses negative climate and environmental externalities, a market failure, through the reduction of carbon emissions and other air pollution, increased resilience to climate change and public health, which are not effectively reflected in market prices, helping to complete the electricity market by enabling the participation of end-customers.

The operation is therefore eligible under Article 309 (c) common interest in energy (renewable energy) and environment (tackling climate change).

The Financial Value Added generate through the EIB intervention is commensurate with the credit rating of an institution like Bpifrance. In soliciting as security Multiple Assignment of Rights as opposed to the guarantee from the parent EPIC Bpifrance an additional financial advantage is generated compared to Bpifrance alternative source of funding, which is a bond issuance benefitting from a guarantee of the parent EPIC.

In addition, EIB is providing advice and introduction of EIB's Green (CAES) eligibility criteria.

Objectives

The operation will focus 100% on Climate Action and Environmental Sustainability objectives, helping to tackle climate change. It will also support national and EU renewable energy targets, notably ensuring energy supply security.

Sector(s)

• Energy - Electricity, gas, steam and air conditioning supply

Proposed EIB finance (Approximate amount)

EUR 500 million

Total cost (Approximate amount)

EUR 670 million

Environmental aspects

This operation will generate environmental benefits by supporting projects that help mitigate climate change. The EIB will assess the capacity and procedures of the financial intermediary to ensure compliance with the national and European environmental and biodiversity regulations as well as their capacity to support the EIB's public disclosure policy, which aims to facilitate access by the public to environmentally relevant information.

Procurement

Final beneficiaries will be requested to comply with applicable national and EU Procurement Directives, as appropriate.

Status

Signed - 13/12/2024