North Yorkshire-based power company Drax Group said on Monday it has struck a new infrastructure term loan facilities agreement “that provides committed facilities of approximately £160 million with a range of maturities between 2024 and 2030, further extending Drax’s debt maturity profile.”

Drax added: “The facilities have an average margin of 2.07%.

“Taken together with Drax’s existing borrowing, including a carbon-linked ESG facility which was recently extended to 2025, this agreement further reduces the group’s all-in cost of debt below 4%.

“The agreement also includes an option for Drax to obtain up to a further £75 million of facilities, if agreed between Drax and its lenders.

“If utilised, these additional facilities could have a maturity of up to 2030.

‘The facilities under this Agreement also have a delayed draw and proceeds are expected to be used in the ordinary course of business.”