Today marked the signature of financing agreements between Terna and the European Investment Bank (EIB) for the second and third tranches of a €1.9 billion loan for the Tyrrhenian Link, the submarine electricity cable connecting the Italian peninsula, Sicily and Sardinia.
Following the initial €500 million tranche signed on 8 November 2022, the contracts signed today confirm a further two tranches, totalling €900 million, for the construction and commissioning of the East and West sections of the Tyrrhenian Link. Terna plans to invest around €3.7 billion in total for the infrastructure, which will be complete and fully operational by 2028.
With terms of around 22 years from each drawdown, the loans have a longer maturity and more competitive costs than those generally available on the market. This puts them in alignment with Terna's policy to optimise its financial structure.
These new transactions bring total EIB financing for Terna to €3.4 billion — before a further €500 million for future loan tranches for the Tyrrhenian Link already approved by the Bank.
Background information
European Investment Bank
The EIB Group has adopted the Climate Bank Roadmap with the ambitious goals of activating investments for €1 000 billion in favour of climate action and environmental sustainability by 2030, and of allocating more than 50% of its loans to actions for the climate and environmental sustainability by 2025. Since 2021, again as part of the Climate Bank Roadmap, all new operations of the EIB Group have been aligned with the objectives and principles of the Paris Agreement. Between 2019 and 2022, the EIB Group provided loans for projects in Italy worth approximately €45 billion.
The Terna Group is one of the leading European and global electricity transmission operators. It manages Italy’s national high-voltage transmission grid, with around 75 000 km of power lines over 900 electrical substations across the country, and 26 cross-border interconnections. Its mission is to guarantee the secure operation, quality and efficiency of the Italian electricity system 24 hours a day, 365 days a year, and to ensure equal access conditions for all market operators. A centre of excellence made up of over 5 400 professionals, Terna plays a guiding role in the energy transition process towards complete decarbonisation and the full integration of energy from renewable sources into the grid.