The European Investment Bank has approved a €60m loan to support renewable energy and power grid investment in Andorra.
The bank said it has signed an initial €30m tranche with the Principality, marking its first ever lending operation in the country.
The EIB added the financing will support projects in renewable generation, electricity transmission and distribution, as well as district heating and cooling systems.
The investments are aimed at accelerating Andorra’s energy transition and improving energy security by reducing reliance on imports.
Projects will be developed mainly by Forces Elèctriques d’Andorra.
The loan is provided on favourable terms in line with countries of a similar credit rating and is intended to diversify Andorra’s sources of international financing.