Infrastructure debt facility - Drax

Infrastructure debt facility

Extended maturity profile, reduced cost of debt

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RNS Number : 9331Y
Drax Group PLC (Symbol: DRX)

Drax is pleased to announce that it has agreed a new infrastructure term loan facilities agreement (the “Agreement”) that provides committed facilities of approximately £160 million with a range of maturities between 2024 and 2030(1), further extending Drax’s debt maturity profile.

The facilities have an average margin of 2.07%(2). Taken together with Drax’s existing borrowing, including a carbon-linked ESG(3) 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(4) and proceeds are expected to be used in the ordinary course of business.

Enquiries:

Drax Investor Relations: Mark Strafford

+44 (0) 7730 763 949

Media:

Drax External Communications: Selina Williams

+44 (0) 7912 230 393

Website: www.drax.com

END

  • (1) €25 million in 2024, €70 million in 2026, £45 million in 2027 and €31.5 million in 2030. Euro facilities have been converted to £GBP for the purposes of this announcement only at a rate of €1.10/GBP£1. Drax intends that foreign exchange hedging of any Euro funds into £GBP will take place in advance of drawing funds.
  • (2) Linked to LIBOR and EURIBOR. The weighted average margin of the facilities including the annual amortised cost in relation to duration fees.
  • (3) The Environmental, Social and Governance (ESG) facility includes a mechanism that adjusts the rate of interest paid based on Drax's carbon emissions against an annual benchmark, reflecting Drax's continued commitment to reducing its carbon emissions as a part of its overall purpose of enabling a zero-carbon, lower cost energy future and an ambition to become carbon negative by 2030
  • (4) Six months, with the exception of the €31.5 million facility due in 2030 which can be drawn up to 13 November 2020.