The International Finance Corporation (IFC) has announced a landmark green and sustainability-linked loan of €500m to Engie.
The financing aims to bolster Engie’s efforts to expand its renewable energy portfolio in emerging markets and decarbonise its activities.
It is also designed to advance Poland’s decarbonization goals and enhance energy security in South Africa by promoting clean and sustainable energy solutions.
The loan includes ambitious climate targets as well as innovative occupational health and safety commitments, IFC said.
It is co-financed with two other development finance institutions, the Asian Infrastructure Investment Bank (AIIB) and Société de Promotion et de Participation pour la Coopération Economique (Proparco).
In addition, IFC is mobilizing capital from seven private credit insurers, making this IFC’s largest ever credit insurance mobilisation for a single client.
Combined, the €340m in commercial and development capital mobilised by IFC for Engie enables the company to diversify and expand its funding sources.
Valérie Levkov, global industry director, IFC, said: “The partnership between ENGIE and IFC spans nearly three decades, with landmark projects across continents and sectors.
“As countries around the world face energy transition challenges, we are actively mobilising private capital and deepening our strategic ENGIE-IFC partnership so the company can further invest in clean, affordable, and reliable energy that is accessible to all, paving the way for a greener, more resilient future.”
The new loan is structured with specific sustainable performance objectives in alignment with the company’s climate targets, including Engie’s commitment to phase out coal by 2025 in continental Europe and by 2027 worldwide.
Engie also aims to achieve a 50GW portfolio of renewable projects by 2025 and an 80GW portfolio by 2030, significantly contributing to climate change mitigation.
By facilitating the development of 1.7GW of renewable energy capacity by 2027, the new loan will help avoid approximately 3.9 million metric tonnes of carbon dioxide equivalent (MtCO2e) per year, IFC said.
Adrien Koenig, group head of structured finance, Engie, said: “To accelerate the energy transition, considerable resources and efforts are needed from many stakeholders.
“Our partnership with IFC is certainly a meaningful contribution and we feel grateful for what they achieved with this financing.
“We are also proud to highlight the innovative structure of this most recent corporate loan, which includes climate-related targets for scope 3 emissions and a health and safety performance indicator that covers Engie employees and subcontractors on all sites, reflecting ENGIE’s sustainability ambitions.”
The loan builds on IFC’s $400m financing for Engie Energía Chile in 2023, which will boost the supply of clean energy to the country’s national electric system by supporting a shift from fossil fuel-based power generation to renewable power.
The partnership with Engie underscores IFC’s commitment to advancing green energy solutions and supporting sustainable infrastructure development.
By driving the adoption of renewable energy technologies and promoting low-carbon growth, IFC enables scalable and replicable solutions that accelerate the global energy transition.