All agreed loans

Sweden. E.ON Sverige AB

Date of agreement: 4 Apr 2007
Country: Sweden
Customer: E.ON Sverige AB
Amount in SEK: SEK 500 million
Amount in EUR: EUR 53.6 million
NACE sector / loan type: Electricity, gas, steam and hot water supply
Business area: Energy and water

Project

The loan totalling SEK 500 million is aimed at financing the replacement of 17,000 kilometres of weather-sensitive uninsulated overhead power distribution lines with underground cables to improve the ability of the power distribution grid in Sweden to resist hurricane winds. The hurricane "Gudrun" in 2005 caused severe damage to the grid, especially in southern Sweden. When in 2007 the storm "Per" hit Sweden's west coast, approximately 300,000 households were left without electricity. The company is set to invest more than SEK 10 billion in making the grid safer. Some 2,600 kilometres of regional networks will be broadened to a width of 35-40 metres to prevent disruption caused by falling trees. E.ON Sverige is the third largest power utility in Scandinavia with core markets in southern and central Sweden.

Sustainability summary

E.ON's project to switch from overhead power lines to underground cables will have low and manageable environmental impacts. Low voltage uninsulated overhead power lines in rural districts are susceptible to interruptions from falling trees, which are often caused by strong winds or heavy snow loads. The new underground cables are mainly placed along existing roads to facilitate maintenance and minimise the environmental impact. E.ON Sverige is certified in accordance with ISO 14001 and 9001.