FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / News / Read News


JPMorgan Chase Agents $2.5B Sustainability-Linked Credit Facility for Avangrid

July 02, 2018, 07:19 AM
Filed Under: Energy

Avangrid, Inc., a sustainable energy company, announced that the Company has entered into its first syndicated sustainability-linked credit facility as the next step in its ongoing efforts to financially support projects geared to its commitment to safeguarding the environment, reducing its carbon footprint and growing as a sustainable company.

The innovative sustainability-linked pricing mechanism allows Avangrid to adapt liquidity to its $14.4 billion investment plan for the 2017-2022 period, while fulfilling its commitment to a competitive and clean energy future and still delivering strong financial results.

The $2.5 billion revolving credit facility will extend tenor for five years until 2023, and will have 21 lenders participating. Adjustments to the loan pricing will be based on Avangrid's continuing reduction in emissions intensity.

"Our values shape our approach to the environment and our responsibility to our stakeholders, where sustainability and financial results are intrinsically linked," said James P. Torgerson, Avangrid's chief executive officer. “Development of clean energy and respect for the environment are pillars of our energy production model and our operations. This new financial tool will allow us to reduce our interest rate by meeting targets on environmental sustainability and renewable energy generation.”

In November 2017, AVANGRID issued its inaugural “green” bonds under Avangrid's newly adopted Framework for Green Financing, a set of guidelines and commitments for the company’s green financing activities that are consistent with the Green Bond Principles published by the International Capital Markets Association. The bond offering was nearly four times oversubscribed and attracted many green-focused investors. The nearly $600 million raised has been used to support investment in three Avangrid renewable generation projects.

JPMorgan Chase Bank, N.A., served as Administrative Agent for the facility; JP Morgan, Bank of America Merrill Lynch, MUFG, Santander and Banco Bilbao Vizcaya Argentaria (BBVA) acted as joint lead arrangers for the facility. BBVA acted as “Sustainability Agent.”

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.