EIB provides $300 million loan to Naturgy to modernize Panama's power grid

Deal Analysis

The European Investment Bank (EIB) is providing a $300 million loan to Naturgy, guaranteed by CESCE, to modernize and expand Panama's power grid. This financing will support Naturgy subsidiaries, EDECHI, S.A. and EDEMET, S.A., in improving the reliability and efficiency of the transmission infrastructure. The project aims to facilitate the integration of renewable energy sources into the Panamanian grid, aligning with broader energy transition goals. This deal is significant due to the involvement of the EIB, a major multilateral financial institution, and Naturgy, a key player in the energy sector. The loan, backed by a guarantee from CESCE, demonstrates confidence in the project's viability and Panama's energy sector. The modernization of the power grid is crucial for supporting Panama's economic growth and its transition towards a more sustainable energy mix.

EIB's $300 million loan represents a substantial investment in Panama's power grid.
Naturgy's involvement as the developer brings expertise in energy infrastructure projects.
CESCE's guarantee enhances the financial security of the loan.
The project focuses on improving grid reliability and facilitating renewable energy integration.

Market Context: The deal occurs within the context of a growing need for modernized and reliable power grids in developing economies, particularly to support the integration of renewable energy sources. Panama, like many countries in the region, is seeking to diversify its energy mix and reduce its reliance on fossil fuels.

Source Intelligence

KEY DETAILS

This is the largest loan signed by the EIB for a private company in Central America. The loan is guaranteed by Spanish export credit agency CESCE.

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Deal Size

EIB and Naturgy sign $300 million CESCE-guaranteed loan to modernise Panama power grid

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Location

EIB and Naturgy sign $300 million CESCE-guaranteed loan to modernise Panama power grid

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Signing

EIB and Naturgy sign $300 million CESCE-guaranteed loan to modernise Panama power grid

PARTIES MENTIONED IN SOURCE

E

EIB lender

"EIB and Naturgy sign $300 million CESCE-guaranteed loan to modernise Panama power grid"

N

Naturgy borrower

"EIB and Naturgy sign $300 million CESCE-guaranteed loan to modernise Panama power grid"

C

CESCE guarantor

"EIB and Naturgy sign $300 million CESCE-guaranteed loan to modernise Panama power grid"

E

EDEMET, S.A. borrower

"Naturgy Energy Group, via its Panamanian distribution companies EDEMET, S.A. and EDECHI, S.A., have signed a $300 million framework loan to back the modernisation and expansion of Panama’s power grid."

E

EDECHI, S.A. borrower

"Naturgy Energy Group, via its Panamanian distribution companies EDEMET, S.A. and EDECHI, S.A., have signed a $300 million framework loan to back the modernisation and expansion of Panama’s power grid."

high quality Enriched Feb 19, 2026