Vestas signs new €2 billion credit facility

In: CorporateTurbines
29/04/2021
Turbine manufacturer Vestas has signed a €2,000 million revolving multi-currency credit facility with a group of banks. The facility’s margin will be closely linked to Vestas’ sustainability KPIs, and will support Vestas’ renewable energy ambitions.

The facility, which is available for general corporate purposes, including guarantees issuance in relation with wind power projects, carries a five-year tenor with two one-year extension options, replacing Vestas’ undrawn EUR 1,150 million revolving credit facility signed in 2017.

Directly linked with Vestas’ sustainability strategy entitled “Sustainability in everything we do”, the facility’s interest rate margin will be adjusted based on sustainability-linked performance targets, marking the first time Vestas has engaged with sustainability-linked financing. These targets measure Vestas’ ability to reduce its own carbon footprint and enhance workplace safety while subsequently adding ambitious targets to improve the carbon footprint across its supply chain. Performance targets will also cover ambitions around more sustainable materials use, and increased recyclability across the turbine value chain.

Marika Fredriksson, Executive Vice President and CFO of Vestas states “At Vestas, we are striving to accelerate the deployment of renewable energy by building scale and driving growth across our business. We are also committed to ensuring this growth safeguards the interests of future generations, and supports a more sustainable planet. Following the strong credit rating from Moody’s obtained earlier this year, strengthening our financial capabilities is the next natural step in this journey, and linking interest rates margins with Vestas’ sustainability performance reinforces our ambition to integrate sustainability into everything we do”.

Lisa Ekstrand, Senior Director and Head of Sustainability at Vestas said: “With this sustainability linked loan agreement, Vestas is demonstrating the inherent value in combining our commercial and sustainability strategies. We can now further strengthen our ability to improve sustainability performance, both across our direct operations, and across our indirect footprint. This journey is crucial to achieving Vestas’ vision: to build sustainable energy systems through our growing leadership position within renewables.”

HSBC Continental Europe SA and Skandinaviska Enskilda Banken AB acted as Co-ordinating Mandated Lead Arrangers and Bookrunners for the transaction. In addition, Banco Santander, Citi, DNB, Nordea, Societe Generale and Unicredit joined as Mandated Lead Arrangers and Bookrunners, and BNP Paribas, Danske Bank, JP Morgan and Standard Chartered joined as Mandated Lead Arrangers.

HSBC was the Documentation Agent for the facility. SEB is the Facility Agent and Sustainability Advisor.


Copyright © 4C Offshore 2021

  • ISO 14001 173953 2015 AHSO GBR UKAS 2 | 4C Offshore
  • Achilles UVDB Supply Chain Community | 4C Offshore