The European Investment Bank (EIB) has granted a €600 million (£470m) loan to upgrade and expand a distribution network in Spain.

It has signed an agreement with power firm Endesa S.A. for the first €300 million (£234m) instalment.

The cash will be used to finance the company’s investment programme that aims to modernise the power grid.

The Bank stated: “The EIB loan will help to improve the efficiency of the company’s distribution activities by reducing power losses and increase the network’s capacity to satisfy the demand from new customers.”

• EIB, EU, power grid, spain