Ørsted has on Monday entered into a five-year agreement for a credit facility of two billion euros linked to selected sustainability targets with the possibility of two extensions of one year each. The facility is intended for Ørsted's general business activities and replaces the existing, unutilized credit facility of 1.4 billion euros, which was established in December 2015.
The interest margin of the credit facility is linked to sustainability targets, so the interest rate will be adjusted depending on whether Ørsted meets two predefined targets.
- At Ørsted, we are working purposefully to promote the green transition. We have issued green senior bonds and hybrid capital since 2017, and are now using the opportunity to take the next natural step together with our banks and incorporate our green ambitions as sustainability-related performance targets in our loan facilities, says Marianne Wiinholt, Group CFO at Ørsted.
The targets that Ørsted must meet in relation to the agreement are that Ørsted must reduce CO2 emissions from its energy production and operations to 10 g CO2e/kWh by 2025. In addition, the company must comply with the EU's new taxonomy regulation. In order to comply with this regulation, Ørsted must implement its investment program of DKK 350 billion in the periods 2020-2027. The program will pave the way for achieving the company's goal of an installed capacity of approximately 50 GW of renewable energy in 2030.
Nordea has acted as 'Coordinating Mandated Lead Arranger and Bookrunner', 'Documentation agent' and 'Sustainability Coordinator' on the facility. In addition, a number of banks are part of the transaction.
The banks are: Bank of America, Barclays Bank PLC, BNP Paribas, Citibank N.A., Jersey Branch, Rabobank, Crédit Agricole Corporate and Investment Bank, Danske Bank, Deutsche Bank, Goldman Sachs, Handelsbanken, HSBC, J.P. Morgan AG, Morgan Stanley, MUFG, National Westminster Bank Plc and SEB. Nordea also acts as ‘Agent’.
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