National Grid has secured a $743m (€658m) green loan, which is supported by multi export credit agencies, to help fund the 1400MW Viking link between the UK and Denmark.
The loan has been structured under the National Grid’s Green Financing Framework and is guaranteed by Sace ($488m) with Simest Cirr support and Euler Hermes ($255m).
National Grid said this is the first time multiple export credit agencies have come together to finance a green project of this size.
The loan follows the guidelines set by the Loan Market Association’s Green Loan Principles.
Viking Link is a joint venture between National Grid and Danish system operator Energinet that, when completed in 2023, will enable more effective use of renewable energy, access to sustainable electricity generation and improved security of supply, National Grid said.
National Grid head of corporate finance Katerina Tsirimpa said: “Britain’s energy system is in the midst of a rapid and complex transformation.
“We know we have a critical role in the acceleration towards a cleaner future.
“This green loan represents another important contribution towards our net zero commitment and it reinforces our strong leadership position in the path to a greener energy landscape.”