The International Finance Corporation (IFC), a member of the World Bank Group, announced a historic €500 million loan tied to sustainability and ecological purposes to Engie.  

The financing aims to bolster Engie's efforts to expand its renewable energy portfolio in emerging markets and decarbonize its operations. It will also be used to advance Poland's decarbonization goals and enhance energy security in South Africa by promoting clean, sustainable energy solutions. 

According to IFC, the loan includes ambitious climate targets, as well as innovative commitments related to occupational health and safety. It is co-financed with two other development finance institutions: the Asian Infrastructure Investment Bank (AIIB) and the Société de Promotion et de Participation pour la Coopération Économique (Proparco). 

In addition, IFC is mobilizing capital from seven private credit insurers, marking the largest private credit insurance mobilization in IFC history for a single client. Together, the €340 million in commercial and development capital mobilized by IFC for Engie enables the company to diversify and expand its funding sources. 

“The partnership between Engie and IFC spans nearly three decades, with landmark projects across all continents and sectors,” said Valérie Levkov, IFC's Global Industry Director. “As countries around the world face challenges in the energy transition, we are actively mobilizing private capital and deepening our strategic partnership with ENGIE so the company can continue investing in clean, affordable, and reliable energy that is accessible to all, paving the way for a greener, more resilient future.” 

According to an IFC statement, this loan will facilitate Engie's commitment to phasing out coal by 2025 in continental Europe and by 2027 globally. The company also aims to achieve a portfolio of 50 GW of renewable projects by 2025 and 80 GW by 2030, making a significant contribution to climate change mitigation. By supporting the development of 1.7 gigawatts (GW) of renewable energy capacity by 2027, the new loan will help avoid approximately 3.9 million metric tons of CO2 equivalent (MtCO2e) per year. 

Adrien Koenig, Director of Structured Finance at ENGIE, stated that “to accelerate the energy transition, significant resources and efforts from multiple stakeholders are needed. We are proud to highlight the innovative structure of this latest corporate loan, which includes climate-related targets for Scope 3 emissions and a performance indicator for health and safety covering ENGIE employees and subcontractors at all sites.” 

The loan builds on IFC’s US$400 million financing for Engie Energía Chile SA in 2023, which will boost clean energy supply to the country’s national grid by supporting the shift from fossil fuel-based power generation to renewable energy.