The question is whether the new EPEN loans and facility constitute coal/lignite financing. We note the split of EPEN into two main parts: EP Infrastructure (EPIF) and EP Power Europe (EPPE). EPIF operates mainly various fossil gas operations. EPIF is raising debt for its operations on the subsidiary level which makes sense as EPIF with its gas operations thus can avoid being targeted for coal investment exclusion criteria. In contrast, we note that 100% owned and coal rich EPPE is not raising debt under its own ticker.
This leads us to the conclusion that EPEN funding is mainly injected into EPPE. Following this, we believe that the loan deals are likely to be intended for EPPE, and thus the stakeholders in the deal are engaging in coal/lignite financing.