MADRID, Nov 4 (Reuters) - Spanish power producer Endesa said on Tuesday it had secured a 300 million euro ($389 million) loan from European Investment Bank (EIB) to improve its distribution grid in Spain this year and next.
Endesa said the deal allowed the company to secure very long term financing at competitive rates and reinforced its liquidity.
The loan has a maximum maturity of 15 years. Endesa will only have to pay interest for the first three years and thereafter will start repaying the capital plus interest.
The company, majority owned by Italy's Enel and Spanish construction-to-wind power firm Acciona, said it was spending 2.53 billion euros on the grid improvements over the two years.

(Reporting by Ben Harding; editing by Paul Day) ($1=.7711 Euro) (ben.harding@reuters.com; +34 91 585 8530; Reuters Messaging: ben.harding.reuters.com@reuters.net)

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