Drax in new ESG £300m revolving credit facility

North Yorkshire-based power company Drax Group said on Thursday it has completed the refinancing of its revolving credit facility as a “New Environmental, Social & Governance Revolving Credit Facility.”

Drax said: “The new £300 million facility matures in 2025, with an option to extend by one year.

“The facility replaces the current RCF which matures in 2021 and provides increased liquidity, enabling the full facility to be drawn as cash (the previous facility restricted cash drawn to support liquidity to £165 million).

“The facility is currently undrawn for cash.

“The facility has a customary margin grid referenced over LIBOR, which reflects a small reduction in cost versus the current RCF and includes an embedded ESG component which adjusts the margin based on Drax’s carbon intensity measured against an annual benchmark.”

Drax has also agreed a change to the group’s £35 million term-loan facility, maturing in 2022, “in order to simplify its capital structure.”

It said this facility will now rank as “senior, previously super senior.”