Endesa Investee Reganosa Takes out a Euro 416 Million Loan to Finance the Construction of the Mugardos Regasification Plant; The
October 28 2005 - 10:12AM
Business Wire
Endesa Will Invest Euro 1.4bn to Develop Various Energy Projects in
Galicia in the Next Five Years Reganosa, a company in which Endesa
holds a controlling stake and which is constructing a
regasification terminal in Mugardos-Ferrol, signed a syndicated
loan for Euro 416 million in Madrid today to finance this project.
Among others, the plant will supply an 800MW combined cycle plant
that Endesa is building in As Pontes. Both initiatives form part of
Endesa's Capex Plan. BBVA and Caixa Galicia are the leaders of this
financial operation, in which Banca Intesa, BNP, Cajamadrid,
Caixanova, ICO and Royal Bank of Scotland are also taking part;
Caixa Galicia is the credit agent. The loan is for Euro 370
million, which the group will use to construct the regasification
plant at Mugardos and the gas pipeline network. An additional
credit line will also be made available to cover the VAT charge on
the investment - Euro 46 million - bringing the total loan to Euro
416 million. The financial consortium was selected through an
international tender which Endesa's Finance Division helped
Reganosa to organise. The tender attracted an enormous amount of
interest, with 16 proposals being put forward. The main Euro 370
million credit will be structured as a 25-year project finance
loan. This amount, plus the company's shareholders' equity, will be
sufficient to construct the regasification plant and start
commercial operations in early 2007. Reganosa was created
specifically to build and operate the Mugardos-Ferrol
regasification plant. Endesa holds a 21% stake in this company, in
which Union FENOSA Gas, Sonatrach, the Tojeiro group, the Galician
regional government and financial institutions Caixa Galicia, Banco
Pastor and Caixanova also hold shares. The plant will have two
150,000m(3) LNG storage tanks. The outer shell of the tanks and the
loading line have already been completed and the global execution
of the project stands at 60%. In a year's time the terminal is
scheduled to receive its first methane tanker to cool the tanks
after which the test period will start. Commercial activity is
slated to begin in the first quarter of 2007. When it reaches
normal operating levels, Reganosa will supply the gas network with
the equivalent of 8% of Spanish gas demand. A large part of the
plant's regasification capacity will be used by Endesa to fuel an
800MW combined cycle plant to be built in As Pontes on top of the
1,400MW coal-fired plant which is already operating in this area.
This coal-fired power plant is currently being transformed to use
imported coal exclusively once the adjacent mine is closed down in
2008. In addition to these projects, Endesa plans to build a new
coal terminal in Ferrol, with capacity to unload some five million
tonnes of this fuel. A wind turbine factory will also be
constructed in Ferrol and as part of the Group's extended wind farm
plan (more than 800 additional MW). In total, Euro 1.4 billion will
be invested in Galicia by the company over the next five years -
the biggest investment package seen in this region in several
decades. Today, Endesa has a large and diverse generation business
in Galicia with 1,400 MW of thermal capacity, 438 MW of wind farm
capacity and 376 MW of hydro capacity. Although the Reganosa
project should revitalise the manufacturing framework of Galicia,
it also has a national scope as it will mean a new entry point for
gas in the Iberian peninsula which should help to create a more
balanced Spanish gas system. It will also diversify gas supply in
terms of where it comes from and who the suppliers are. * This
document may contain certain forward-looking statements regarding
anticipated financial and operating results and statistics that are
subject to risks and uncertainties as well as to material risks,
changes and other factors which may be difficult to predict,
including, without limitation, those factors described in the
Documento de Registro de Acciones of Endesa filed within the
Comision Nacional del Mercado de Valores and in the Form 20-F of
Endesa filed within the Securities and Exchange Commission, both
for the fiscal year ended December 31, 2004. For all of these
forward-looking statements, we claim the protection of the safe
harbour for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995.
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