EIB to provide EUR 634 mln loan for Tauron's distribution networks
The European Investment Bank (EIB) has signed a EUR 634 million loan agreement with Poland’s No.2 utility Tauron to help finance the planned investments in its energy distribution networks in southern Poland.
Under the deal signed on Friday, Tauron will be able to use the funds within three years, with the maximum repayment period of 18 years.
"This is the European Investment Bank's largest loan for Tauron Polska Energia and one of the largest EIB loans granted to a Polish company - EUR 634 million or PLN 2.8 billion," said Teresa Czerwinska, EIB Vice-President responsible for the Bank's operations in Poland.
"The financing will help Tauron to upgrade the electricity distribution network," she added.
According to Tauron, the PLN 2.8 billion is the largest ever corporate financing granted by EIB in Poland for purposes other than the development of transport infrastructure.
The funds will be used for investments related to connecting new customers (including renewable energy micro-installations), development of smart metering infrastructure (intelligent metering systems) as well as the modernisation and expansion of transformer stations aimed at improving the quality of energy supplies.
"The completion of the investment tasks is planned by the end of 2026, and their implementation is part of the programme of building smart grids indicated in the European Green Deal," Tauron's representatives said on Friday.