The signature ceremony took place in Rome, with the participation of the EIB’s group president Nadia Calviño, EIB vice-president Gelsomina Vigliotti, Terna CEO and general manager Giuseppina Di Foggia, SACE CEO and general manager Alessandra Ricci, and head of Industry Infrastructure in Intesa Sanpaolo’s IMI Corporate and Investment Banking Division Riccardo Dutto. Image courtesy Terna.
Italy’s TSO Terna has signed €1.5 billion ($1.8 billion) in agreements, including loans and a credit facility, to back the development and construction of the Adriatic Link.
The financing will come courtesy the European Investment Bank (EIB), banking group Intesa Sanpaolo (IMI Corporate and Investment Banking Division) and the Italian export credit agency, SACE.
The Link is a submarine power cable linking the Italian regions of Marche and Abruzzo, aiming to strengthen energy exchange in central Italy and promote the integration of renewable energy sources.
The HVDC line will be 251km long, 210km of which will be submarine cable at a maximum depth of around 100 metres.
It will have a nominal active transmission capacity of 1,000MW and will link the Fano (Province of Pesaro and Urbino) and Cepagatti (Province of Pescara) electrical substations.
The cable will be underground or under the seabed for the entire route, minimising the impact on the region. Work (authorised by the Ministry of the Environment and Energy Security in January 2024) on land began late last year.
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Commenting in a release was Terna CEO and general manager Giuseppina Di Foggia: “The financing signed today with the EIB (with which Terna has a strong, longstanding relationship) and Intesa Sanpaolo (which has a key role in backing the group’s financial strategy) recognises the strategic value of our network infrastructure…”
Di Foggia added that this infrastructure and its development will be vital to increasing the country’s energy autonomy and security.
“At the same time, SACE’s role in the agreement shows Terna’s work creates economic and social value for the country,” she added.
EIB group president Nadia Calviño said: “This investment will be key to boost a more stable and safer energy market in the country, improving the national power grid and speeding up the integration of renewable energy sources.”
The operation is financially structured into three tranches:
- A €750 million ($876.1 million) loan granted by the EIB to Terna, with a duration of 22 years;
- A €500 million ($584.1 million) credit line provided by Intesa Sanpaolo to Terna, with a duration of 7 years;
- An additional €250 million ($292 million) loan from Intesa Sanpaolo, with funding made available by the EIB and a duration of 7 years, in support of the project.
Said SACE CEO and general manager Alessandra Ricci: “We are moving towards more resilient and integrated energy infrastructure capable of responding to global challenges. SACE will continue to be a strategic partner for projects shaping the future of Italy.”
According to Terna, each of the tranches are covered by SACE’s Archimede guarantee, a structural guarantee introduced in 2023.
