A Sustainability-Linked Loan to promote employment and clean electricity in South Africa

ENGIE is a leading European and global group in the energy sector and is diversified geographically, with 30 countries of operation (44% of its turnover is generated in France, 32% in the rest of the EU and 7% in Latin America). It operates throughout the energy value chain through activities for project development, power generation (including 49 GW from renewable sources and 61 GW thermal, mainly gas), transmission, distribution, as well as decarbonization services for its clients. The Group is firmly on the path to reach Net Zero Carbon by 2045. Since 2021, it has been geographically refocusing its activities and strengthening its portfolio of renewable capacity (through both organic and external growth), while maintaining its core business as a grid stabilizer.

Proparco has allocated EUR 60m of financing as part of a total financing package for ENGIE SA of EUR 450m structured in the form of a Sustainability-Linked Loan (SLL). This SLL will serve to finance acquisitions of renewable energy projects in Poland and South Africa. It thus fits in with ENGIE Group’s strategy to increase the share of renewables in its generation capacity mix. This loan, which is combined with objective parameters related to the climate and occupational safety, aims to encourage the company’s efforts towards the energy transition.

Proparco’s financing will maintain almost 360 jobs in South Africa. It will facilitate access to green electricity for about 3,200 beneficiaries and avoid the emission of 478 KteqCO² per year.

The project will contribute to SDGs 7 (“Affordable and clean energy”), 8 (“Decent work and economic growth”) and 13 (“Climate action”).