What was in the air is now official. Indeed, the International Finance Corporation (IFC or IFC), a member of the World Bank Group (WB), announced on October 3, 2024, the granting of a loan of approximately $534 million to ENGIE SA, the holding company parent of the ENGIE group.
This financing initiative is expected to accelerate ENGIE’s renewable energy growth in emerging markets while supporting decarbonization efforts in Poland and strengthening energy security in South Africa through clean energy solutions.
The director in charge of industry at the IFC, Valérie Levkov, declared that “as countries around the world face the challenges of energy transition, we are actively mobilizing private capital and deepening our partnership strategic ENGIE-IFC strategy so that the company can continue to invest in clean, affordable and reliable energy, accessible to all, paving the way for a greener and more resilient future.
In addition, the loan comes with ambitious climate targets and innovative workplace health and safety commitments. It is co-financed by the Asian Infrastructure Investment Bank (AIIB) and Proparco, a French development finance institution. Additionally, IFC is mobilizing €340 million of commercial and development capital from seven private credit insurers, representing the largest mobilization of credit insurance ever by IFC for a single client.
Also, ENGIE’s decarbonization strategy, supported by the loan, includes the complete elimination of coal in continental Europe by 2025 and globally by 2027. The company also aims to build a portfolio of renewable energy of 50 Gigawatts (GW) by 2025 and 80 GW by 2030. This financing will facilitate the development of a renewable energy production capacity of 1.7 GW by 2027, which should help avoid the emission of around 3.9 million tonnes of carbon dioxide per year.
It should be noted that Engie is seeking to develop a portfolio of 7 GW of projects, according to Mohamed Hoosen, general manager of the company for Asia, the Middle East and Africa. It could also invest in transmission projects in South Africa, once these are open to private participation.
Moctar FICOU / VivAfrik
