Vattenfall has signed a sustainability-linked multicurrency revolving credit facility totalling €2bn, which is available for general corporate purposes.
The new facility replaces Vattenfall’s existing and undrawn €2bn revolving credit facility signed in 2014.
It carries a three-year tenor with two one-year extension options.
Vattenfall said the facility is a committed bank loan system that allows the company to borrow funds at short notice if needed.
The margin is linked to Vattenfall´s CO2e emissions intensity target, which covers scope one and two emissions and is approved by the Science Based Targets initiative.
A margin reduction will be applied if the CO2e emissions intensity is below a specified level and a margin premium will be applied above a certain level.
Vattenfall head of finance and group treasurer Johan Gyllenhoff said: “This is an important back-up facility for Vattenfall that ensures that we have financial flexibility.
“The link to our CO2e emissions intensity shows that sustainability is integrated throughout our organisation, including funding activities.
“We now look forward to a good cooperation with our core banking group.”
A total of 15 banks participated in the new credit facility.
Barclays Bank, BNP Paribas, Citibank London branch, Danske Bank, Handelsbanken, ING Bank, Landesbank Hessen-Thuringen Girozentrale, MUFG, NatWest, Nordea, Rabobank, Royal Bank of Canada, Skandinaviska Enskilda Banken, Societe Generale and Swedbank participated in the transaction as mandated lead arrangers and bookrunners.
Societe Generale Corporate & Investment Banking acted as coordinator and documentation agent.
Skandinaviska Enskilda Banken acted as Facility agent and Sustainability Advisor.