(Alliance News) - JLEN Environmental Assets Group Ltd this Wednesday said it has reached a three-year agreement with lenders for a credit facility of GBP170 million, with an uncommitted expansion of GBP30 million.
The London-based investment company will use the credit facility to buy environmental infrastructure projects and cover any working capital requirements that emerge in the process. JLEN primarily invests in renewable energy and waste management projects.
Funds come from JLEN's existing lenders - HSBC, ING and NIBC - and two new lenders, the National Australia Bank and Royal Bank of Scotland International. The agreement offers an uncommitted one-year extension with JLEN's lenders.
JLEN said that drawdowns on the credit facility are available at lower rates than its existing facility.
Rates of interest on the credit facility are directly linked to JLEN's performance against a set of environmental, social, corporate governance targets. The targets include: increasing in the volume of clean energy produced by its projects; making contributions to community funds; and ensuring a consistently low number of workplace accidents.
The margin of interest will vary between 195 and 205 basis points over the sterling overnight index average for sterling drawings and over euribor for euro drawings, depending on the company's performance against the above targets. Performance is measured annually and affects the terms of the credit facility in the following year.
"This loan facility enables us to continue to develop our investment pipeline and we're extremely proud to combine that with a set of environmental, social, corporate governance targets that underline our commitment to acting in a socially responsible, safe and environmentally sustainable manner," Richard Morse, JLEN chair said.
JLEN shares were trading up 0.6% at 105.00 pence each in London on Wednesday morning.
By Scarlett Butler; scarlettbutler@alliancenews.com
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