JLEN, the listed environmental infrastructure fund, is pleased to announce that it has signed a new three-year facilities agreement which provides for a committed multicurrency revolving credit facility (“RCF”) of £170 million and an uncommitted accordion facility of up to £30 million.
The RCF provides an increased source of flexible funding, with both Sterling and Euro drawdowns available at lower rates than the existing facility. The agreement includes an uncommitted option to extend for a further year and will be used to make future acquisitions of environmental infrastructure projects to add to JLEN’s current portfolio, as well as covering any working capital requirements.
The interest charged in respect of the renewed RCF is linked to the Company’s ESG performance, with JLEN incurring a premium or discount to its margin and commitment fee based on performance against defined targets. Those targets include:
- Environmental: increase in the volume of clean energy produced
- Social: the value of contributions to community funds
- Governance: maintaining a low number of work-related accidents, as defined under the Reporting of Injuries, Diseases and Dangerous Occurrences (‘RIDDORS’) by the Health and Safety Executive
Performance against these targets will be measured annually with the cost of the RCF being amended in the following financial year.
Lenders to the facility include three of the four existing lenders (HSBC, ING and NIBC) plus two new lenders (National Australia Bank and Royal Bank of Scotland International). The margin can vary between 195bps and 205bps over SONIA (‘Sterling Overnight Index Average’) for Sterling drawings and EURIBOR for Euro drawings, depending on performance against the ESG targets.
Richard Morse, Chairman, commented: “This loan facility enables us to continue to develop our investment pipeline and we’re extremely proud to combine that with a set of ESG targets that underline our commitment to acting in a socially responsible, safe and environmentally sustainable manner.”