Drax strikes £450m sustainability-linked RCF

20th Aug 2024 08:55

(Sharecast News) - Power generation business Drax said on Tuesday that it has struck a new sustainability-linked £450.0m revolving credit facility.

Drax said the new facility matured in 2027, with options to extend by two years, providing it with additional liquidity and replacing its current £300.0m RCF, due to mature in 2026.

The FTSE 250-listed group added that the facility has a customary margin grid referenced over Sterling Overnight Index Average, with adjustments linked to certain Scope 1, 2 and 3 carbon emissions which were based on the firm's 2030 SBTi targets.

Separately, Drax revealed it has also completed a £50.0m term-loan facility which matures in 2028 with a one-year extension option. The term loan has a customary margin referenced over SONIA and will be used for general corporate purposes.

As of 0855 BST, Drax shares were down 0.45% at 664.0p.

Reporting by Iain Gilbert at Sharecast.com