Enel secures $10.34-billion loan for its Endesa bid

24 February 2009

Enel has launched syndication of an eight billion euro ($10.34 billion) loan backing its purchase of a further 25.01-per cent stake in Endesa, taking its total stake to 92 per cent, the company said in a statement on Monday.

Enel SpA's bid to increase its stake in Endesa SA, Spain's largest hydropower generator, will help the Italian utility to expand in South America, where economies are growing as Europe contracts.

The loan is one of the largest new loans to emerge this year and also contains one of the largest 'forward start' agreements, which line up new loans now to replace existing loans when they mature, banking sources said. The loan is being arranged by 12 banks - BVA, Banco Santander, BNP Paribas, La Caixa, Caja Madrid, Calyon, Intesa Sanpaolo, Mediobanca, Natixis, Bank of Tokyo Mitsubishi, Royal Bank of Scotland and UniCredit.

The 12 banks committed the funds to allow the transaction to close. and the loan has now been launched to a wider syndication where more banks have been invited to participate.

The money will allow vendor Acciona to refinance an 8.2 billion euro margin loan that it used to buy the Endesa stake in mid 2007 which was partly secured on Endesa shares that have fallen in value.

Endesa is Latin America's largest private power producer, with half of its 23 million customers in Argentina, Chile, Colombia, Peru and Brazil.