Vattenfall secures EUR-2-bn loan linked to sustainability goals

Swedish state-owned utility Vattenfall AB has signed a deal that will provide it with a EUR-2-billion (USD 2.18bn) revolving credit facility linked to its sustainability performance.

The new loan comes to replace Vattenfall’s existing and undrawn revolving credit line of EUR 2 billion signed in 2020, the company said on Monday.

The margin of the new financing facility is tied to Vattenfall’s progress in meeting specific Scope 1 and 2 greenhouse gas emission intensity thresholds. Three of those are aligned with the utility’s current 2030 sustainability targets.

The debt matures in three years and has two one-year extension options. It was extended by a lending consortium comprising 15 banks and including Barclays Bank Ireland PLC, BNP Paribas, Rabobank, Societe Generale, Royal Bank of Canada and others.

The fresh proceeds will be allocated to support general corporate needs.

"This is an important back-up facility for Vattenfall that ensures that we have financial flexibility. The link to our GHG emissions intensity shows that sustainability is integrated throughout our organisation, including funding activities,” said Maria Paulinz, Group Treasurer at Vattenfall.

Choose your newsletter by Renewables Now. Join for free!