Statkraft, a Norway-based renewable energy company, secured a €1.3 billion (~$1.43 billion) five-year sustainability-linked syndicated revolving credit facility with two ‘one-year extension’ options.
The facility’s interest margin will be adjusted at a premium or discount based on Statkraft’s performance on three pre-defined strategic sustainability targets annually. The targets relate to the company’s development of renewable energy capacity of hydropower, wind, and solar power, its commitment to health, safety, security, environment, and the share of women in management positions.
The new facility replaces the existing syndicated revolving credit facility of NOK9.2 billion (~$1.06 billion), signed in June 2016.
Anne Harris, CFO of Statkraft, said, “Statkraft is very pleased with the agreement, with terms reflecting the strong trust and long-term relationship with our core banks. We are committed to sustainable and responsible business conduct and continuously seek to improve how we do things. As Europe’s largest renewable energy supplier, we, of course, want to support our growth strategy by committing to sustainability targets through this facility.”
Statkraft is a developer of hydropower, wind power, solar power, and gas-fired power projects across Europe, South America, and Asia. The company operates three hydropower and one solar power project in India. The three hydropower projects in Himachal Pradesh are the 192 MW Allain Duhangan hydropower plant, 109 MW Malana hydropower plant, and 100 MW Tidong hydropower plant. The Nellai solar park, which is still under construction, is located in Ettanakulam village in the state of Tamil Nadu is a 55 MWac and 76 MWdc project.
DNB (Den Norske Bank) served as the sustainability coordinator, mandated lead arrangers, and bookrunners, and BNP Paribas served as the documentation agent, mandated lead arrangers, and bookrunners of the facility. This was also supported by the group of banks committing as mandated lead arrangers and bookrunners, such as Barclays Bank, Danske Bank, Handelsbanken, Nordea, Santander, SMBC, Societe Generale, and UniCredit, and SEB, which also served as a facility agent.
In July 2021, Fourth Partner Energy had announced the acquisition of distributed solar portfolio with an 8.9 MWdc capacity from Statkraft India. Out of this capacity, 5 MW is an open access solar project, and the rest is rooftop solar.
According to Mercom’s 2021 Solar Funding and M&A report, in 2021, announced debt financing came to $15.8 billion, a 91% increase compared to $8.3 billion raised during 2020. Record securitization activity was a key contributor to the rise in debt financing activity during 2021, with $3.7 billion in 13 deals.