The investment bank provides a boost to Europe’s energy sector with a massive export credit framework for Enel.
Citi is once again using export credit agencies as a financing engine for Europe’s energy transition.
The investment bank announced Thursday that it served as sole global coordinator on a €1 billion export financing framework for Rome-based Enel Group, backed by a 95% guarantee from Germany’s Euler Hermes. Enel Finance International N.V. has already drawn the first $580 million loan under the facility.
Citi also served as mandated lead arranger, lender, ECA agent and facility agent for the transaction.
The financing focuses on renewable energy and leverages the energy giant’s existing relationships with German suppliers. Citi structured the multi-currency framework agreement, allowing various Enel subsidiaries to access the facility. Enel Finance International NV has drawn the first loan of $580 million.
“Citi is delighted to have acted as Global Coordinator on this transaction with Enel Group and Euler Hermes,” said Richard Hodder, Head of Export and Agency Finance, Citi, in a prepared statement. “The Euler Hermes Shopping Line is an innovative financing tool, and we are proud to have delivered a solution that meets the needs of a global organisation such as Enel.”
This transaction also underscores Citi’s ability to structure and execute cross-border financings for its clients, Hodder added.
The deal mirrors a similar cross-border strategy Citi executed for Spanish energy giant Iberdrola. In that transaction, Citi utilized a €500 million facility guaranteed by Eksfin, Norway’s export credit agency, to finance equipment sourced from Norwegian exporters for a massive offshore wind project in the U.K.
Citi’s Export and Agency Finance platform coordinates custom financing and risk management solutions through partnerships with ECAs, multilateral agencies, and DFIs. By utilizing Citi Services, both commercial and public sector clients can manage complex, cross-border transactions with greater structural certainty.
Anthony Noto covers corporate finance and private credit. Contact him at anoto@gfmag.com
