Enel and Bank of China sign US$1 billion financing facility

Enel S.p.A., Bank of China Ltd., and the China Export & Credit Insurance Corporation (SINOSURE) have signed a non-binding framework agreement to promote the development by Enel Group companies, in particular Enel Green Power, of projects on a world-wide basis with the participation of Chinese companies acting as engineering, procurement and construction contractors and/or suppliers.

The agreement was signed at Bank of China’s head office in Beijing by the Head of Finance and Insurance of the Enel Group, Alessandro Canta, Bank of China’s Deputy General Manager of Corporate Banking Department, Li Mang, and SINOSURE’s Deputy General Manager of Business Development Department, Wang Xu

Under this framework agreement, Bank of China will provide Enel and its subsidiaries with a financing credit line of up to 1 billion US dollars backed by SINOSURE. The framework agreement, which provides the main terms and conditions of the facilities that can be granted pending its validity, will remain in force for a period of five years, with the possibility of being extended if mutually agreed upon by the parties.

Enel has been active in China since 2004 through a series of greenhouse-gas emission reduction projects as envisaged by the Kyoto Protocol. The Enel Group is also acknowledged in China for its technical expertise and its innovative technologies, and this led to the Group being considered as a important partner for cooperation.

During th last years, Enel has signed MoUs with State Grid Corporation of China, the world largest distribution and transmission utility, to cooperate in smart grids and renewable energy; China National Nuclear for cooperation in the construction and operation of nuclear power plants and Bank of China to undertake joint assessment of potential future financial transactions over a maximum period of five years.