ORANO URANIUM ENRICHMENT FACILITY

The project is to expand the existing uranium enrichment capacity in Orano's Tricastin nuclear fuel facilities in the France. The new installations will use modern centrifuge technology.

Enhancing capabilities in uranium enrichment contributes to EU energy strategic autonomy, reducing dependence on non-EU countries for critical materials and services. With its own enrichment facilities, the EU can ensure a stable and controlled supply of fuel for its nuclear reactors.

The Project will increase the uranium enrichment production capacity by more than 30% at the Promoter's site in Tricastin. The Project fulfils the EU objective of nuclear fuel diversification and security of supply, as reflected in the Euratom policy and in the REPowerEU Plan. In line with France's NECP, the investment will contribute to strengthening European uranium enrichment capacities.

The overall rating of the project's contribution to policy goals is rated as good, considering that the site is partially located in a Cohesion Region. The investment contributes towards increasing security of supply by reducing dependency on enriched uranium imports. Moreover, the investment will enable the production of dispatchable low-carbon energy. The Project will yield very good quality and results due to a very good economic rate of return, good broader social benefits, fair employment creation and a very good ESG rating.

The combination of a longer maturity and relatively favourable pricing are benefiting the Company. The loan provides diversification of the Borrower's financing sources as this operation will be the first with the Bank, and it complements other funding sources, a combination of bank debt and debt capital market instruments which, given the current market conditions, are more volatile.

The project is located within existing licensed nuclear industrial site. The impacts of the capacity expansion are expected to be alike to the existing facility for which all negative impacts have been efficiently mitigated. The project is not expected to have significant negative residual impacts. To authorise the extension, an amendment to the decree authorising the current plant, is necessary. The promoter produced the necessary studies describing the project and its consequences in terms of safety and environmental impact and the competent environmental authority is evaluating the studies. Where and if applicable, and based on a risk-based approach as defined in the EIB Group Environmental and Social Policy, the requirements of the related EU Directives - notably the Environmental Impact Assessment (EIA), Birds and Habitats Directives - will be checked during appraisal.

The promoter shall ensure that contracts for implementation of the project will be tendered in accordance with the applicable EU procurement legislation. The supply of certain critical components can be provided only by the sole owner of technology due to non-proliferation aspects. The rest of the project scope will be procured using competitive bidding.