Five banks have arranged a €1.56bn ($1.62bn) one-year bridge loan for Red Electrica de Espana to finance the Spanish power grid operator's acquisition of assets from Union Fenosa and Endesa.

The loan was arranged by JP Morgan, Royal Bank of Scotland, Banesto, Banco Bilbao Vizcaya Argentaria and Ahorro Corporacion Financiera. The proceeds will be used to pay for the acquisitions of Endesa's transport assets for €950m and all of Union Fenosa's transport facilities for €395m.