Daily News: July 2, 2018

JPMorgan Agents $2.5B Revolver for AVANGRID


AVANGRID, a sustainable energy company, closed a $2.5 billion sustainability-linked credit facility with JPMorgan as administrative agent and BBVA as sustainability agent

The financing is part of the company’s ongoing efforts to financially support projects geared to safeguard the environment, reducing its carbon footprint and growing its sustainablility.

The innovative sustainability-linked pricing mechanism will allow AVANGRID to adapt liquidity to its $14.4 billion investment plan for the 2017-2022 period, while fulfilling its commitment to a competitive and clean energy future and still delivering strong financial results.

The $2.5 billion revolving credit facility extends for five years, until 2023, and will have 21 lenders participating. Adjustments to the loan pricing will be based on AVANGRID’s continuing reduction in emissions intensity.

“Our values shape our approach to the environment and our responsibility to our stakeholders, where sustainability and financial results are intrinsically linked,” said James P. Torgerson, AVANGRID’s CEO. “Development of clean energy and respect for the environment are pillars of our energy production model and our operations. This new financial tool will allow us to reduce our interest rate by meeting targets on environmental sustainability and renewable energy generation.”

JPMorgan, Merrill Lynch, MUFG, Santander and BBVA Securities served as joint lead arrangers and joint bookrunners on the revolver.