ENDESA S A : links all its debt to banks following sustainable criteria

• The company has formalised financial transactions with 'green' incentives amounting to 2,675 million euros with 11 top-tier banks.
• Banking conditions have been negotiated that include a commitment by Endesa for 55% of its generation installations on the mainland to operate using renewable technologies by 2022. This will help to strengthen its commitment to decarbonisation targets and will also commit the financial institutions with which it works.
  
• The financial resources for both operations are intended to guarantee the company's liquidity and finance the company's projected business plan for the coming years.
  
• 45% of gross electricity debt was linked to sustainability targets at the end of 2020. The 2021-2023 strategic plan establishes a goal of raising that percentage to 60% by the end of this period.
  

Endesa completed linking its financial operations to sustainability objectives. The company recently signed financial transactions whereby 100% of its debt to external entities is linked to environmental criteria, which undoubtedly contributes to strengthening its commitment to decarbonisation objectives and also commits the financial institutions with which it works.

Firstly, it extended the life of the syndicated credit signed last year for 550 million euros with CaixaBank, Bankia and Kutxabank to 3 years, which already included ESG (Environmental, Social and Governance) sustainability clauses.

And secondly, it extended to 4 years another 9 lines of credit in force and 2 new ones, with a total of 11 financial institutions, amounting to 2,125 million euros linking them for the first time and in full to environmental criteria.

Endesa is specifically committed to achieving 55% of energy production in mainland Spain with renewable technologies by the end of 2022.

The company also presented its strategic plan for 2021-2023 at the end of November, notifying the market that 60% of all its gross debt would be linked to sustainability targets by the end of 2023. At the end of 2020 this percentage was 45%.

Investment plan

Operations are a key part of Endesa's debt structure, guaranteeing liquidity, providing coverage for short-term financing operations under Euro Commercial Paper's sustainable programme and enabling the projected business plan to be financed. In this way the most efficient cost structure that the financial market can provide is achieved.

In the plan presented to the market, the company updated its Energy Transition strategy for 2021-2023 based on two major pillars. First, a 30% growth in its renewable energy park, up to 11,500 MW and with an investment of 3,300 million euros (20% more than in the previous plan). This will lead to 89% of mainland Spain's production being free of CO2 emissions by the end of 2023. And second, the drive to digitise the network that will involve another 2,600 million euros, 30% more than in the 2020-2022 plan.

About Endesa

Endesa is the largest electricity company in Spain and the second largest in Portugal. It is also the second largest gas operator in the Spanish market. Endesa operates an end-to-end business from generation to marketing and through Endesa X also offers value-added services aimed at the decarbonisation of energy uses in homes, companies, industries and Public Administrations. Endesa is firmly committed to the United Nations SDGs and therefore strongly supports the development of renewable energies through Enel Green Power España, the electrification of the economy and Corporate Social Responsibility. The Endesa Foundation is also active in CSR. Our workforce numbers around 9,600 employees. Endesa is a division of Enel, Europe's largest electricity group.