Vena Energy Signs a JPY 53bn Sustainability-Linked Revolving Credit Facility
Vena Energy, Asia-Pacific’s leading renewable independent power producer (IPP), announced today that it has signed its first sustainability-linked Revolving Credit Facility (RCF) of JPY52.8 billion (approximately US$500 million) from eight lenders including BNP Paribas, Crédit Agricole CIB, DBS Bank Ltd, ING Bank, MUFG, Intesa, SMBC and Mizuho.
ING Bank and BNP Paribas acted as joint Green Structuring Advisors for the transaction.
The three-year RCF was structured as a sustainability-linked loan and includes key performance indicators (KPIs) related to environmental impact, workplace diversity, and health & safety, contributing to the achievement of the United Nations Sustainable Development Goal (SDG) 13 “Climate Action” and in line with Vena Energy’s Green Financing Framework.
The sustainability linked RCF follows Vena Energy’s US$325 million green bond issuance in 2020, which was the first corporate USD green bond issuance by a Singapore-based company. Provided by leading ESG-focused lenders, the RCF complements Vena Energy’s capital structure with a flexible liquidity facility alongside the longer-term green bonds in place.
“As a pure renewable energy company, sustainability is at the heart of all our activities at Vena Energy and this transaction further demonstrates our commitment to the environment, diversity, and health & safety in our workplace” said Nitin Apte, CEO of Vena Energy. “We believe this extension of our liquidity facilities will strengthen our financial position to further expand our renewable projects across the region, as well as aligning our ESG and financial performance to deliver a positive impact to the environment, our stakeholders, and our host communities.”
ING’s ad interim head of Wholesale Banking APAC Remko Witteveen said: “The beauty of ING’s partnership with Vena Energy is a common vision on sustainability. We are proud that ING is supporting Vena Energy’s efforts to integrate its sustainability ambitions with its capital structure, and at the same time deepen our commitment to help our clients address climate risks through our expertise in sustainability. Vena Energy continues to showcase leadership across the sustainability spectrum, and we look forward to continuing this partnership in the years to come.”
Bruce Weller, Managing Director and Head of Power and Project Finance APAC, BNP Paribas, said: “With Vena Energy’s socially conscious approach towards combating climate change and decarbonizing the economy, the sustainability-linked revolving credit facility extended to it will help to produce tangible ESG benefits beyond renewable energy. Transactions such as these allow BNP Paribas and other lenders to take a more direct role in accelerating sustainable energy transition in Asia.”