Axpo secures €7 billion sustainability-linked credit facility led by ING Switzerland
![Axpo secures €7 billion sustainability-linked credit facility led by ING Switzerland](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/03/Untitled-design.jpg)
Swiss energy producer and trader, Axpo Holding AG, has finalized a sustainability-linked revolving credit facility (RCF) totaling €7 billion, with over 30 banks participating. ING Switzerland led the syndicate.
Key Points:
- Increased Demand: Originally set at €6 billion, the facility was upsized due to strong demand and significant oversubscription, reflecting investor interest in Axpo’s sustainable initiatives.
- Terms: The unsecured committed RCF has a three-year term with extension and increase options. It replaces two earlier credit lines of €3 billion each.
- Bank Participation: While Axpo did not disclose all participating banks, ING Switzerland served as documentation agent, facility agent, and one of the 12 bookrunners and mandated lead arrangers.
- Tailored Financing: The facility includes both a revolving letter of credit tranche and an RCF tranche, tailored to Axpo’s financing and business requirements to support current operations and growth initiatives.
- Sustainability Criteria: Axpo’s interest rate on the facility is contingent on meeting targets related to the expansion of renewable energies, gender diversity in management, and the employment of apprentices.
- Commitment to Energy Transition: ING Switzerland underscores its commitment to supporting the energy transition by financing renewable energy sources, aligning with strategic priorities for sustainable development.
- Financial Flexibility and Sustainability: Axpo Group’s CFO emphasizes that the facility enhances financial flexibility, while the inclusion of sustainability targets underscores the company’s dedication to a sustainable future.
The credit facility underscores Axpo’s commitment to sustainability and renewable energy, while demonstrating strong support from the banking sector for green initiatives in the energy market.
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