EDP signs a €3.65 billion revolving credit facility
The company said it had signed "a five-year revolving credit facility (‘RCF’), with options to extend for 2 additional years, in the amount of €3.65 billion."
EDP and its subsidiary EDP Finance BV have signed a revolving credit facility worth €3.65 billion for a period of five years, extendable for another two, announced the Portuguese company on Thursday.
In a statement sent to the Securities and Exchange Commission (CMVM), the electric company said it had signed “a five-year revolving credit facility (‘RCF’), with options to extend for 2 additional years (subject to Lenders’ agreement), in the amount of €3.65 billion, which can be drawn in Euros and USD.”
EDP’s first sustainability-linked loan includes two ESG KPIs: the reduction of greenhouse gas emissions and the increase in the percentage of installed capacity from renewable sources within the Group.
The achievement, or not, of these goals will have an impact on the cost of the credit line, since “as structured according to the Sustainability linked Loan Principles of the Loan Market Association” and the emissions reduction targets are “recognized by the Science Based Target initiative as being aligned with the scientific trajectory required to limiting the increase in global average temperature to 1.5º C”.
This new RCF was oversubscribed, “resulting in an increase in the contracted amount and in the number of committed banks, compared to the previous €3.3 billion RCF, which was replaced and had never been drawn.”
The transaction was organised by EDP itself and was attended by 25 domestic and international banks, including Deutsche Bank, BNP Paribas, Caixabank, Caixa Geral de Depósitos, JP Morgan and Banco Santander Totta.
