(Alliance News) - Selby, England-based power generation company Drax Group PLC on Friday said it has secured a three-year extension to that GBP125 million environmental, social and governance facility agreement that it first entered in July 2019.
The final maturity of the facility has been extended to 2025, extending the profile of Drax's existing facilities, which include maturities to 2029.
The environmental, social and governance loan includes a mechanism that adjusts the rate of interest paid based on Drax's carbon emissions against an annual benchmark.
The average all-in interest rate during the first year of the extended loan facility is less than 2%, the FTSE 250-listed company said, adding that the company's overall cost of debt is less than 4% per annum.
Shares in Drax were up 0.3% at 214.40 pence each in London on Friday morning.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Drax (DRX)