UPDATE 1-Terna signs 650 million euro bank loan

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MILAN, June 26 (Reuters) - Italian power grid Terna (TRN.MI) has signed an agreement for a 650 million euro bank loan and a revolving credit line for 500 million euros, it said in a statement on Thursday.

"Both lines, together with the existing unused credit facilities, will grant Terna the necessary flexibility in covering its financial needs as established in the industrial plan," the company said.

Terna said the syndicated loan would have a 7-year maturity and the credit spread payable on the loan is equal to 50 basis points over Euribor.

The revolving credit line will be available for five years, it said, and the credit spread is equal to 70 basis points over Euribor, that may vary according to the percentage of the line used and to the credit assigned by rating agencies.

It signed the bank loan with BBVA, Societe Generale, BNP Paribas, Bank of Tokyo-Mitsubishi and Dexia Crediop -- as joint mandated lead arrangers -- and the revolving credit line with Royal Bank of Scotland and Santander -- as joint mandated lead arrangers. (Editing by Andre Grenon)