H2O Innovation has entered into an agreement with National Bank of Canada, acting as lead arranger, sole bookrunner, administrative agent and sustainability structuring agent of a syndicate of three banks, including Scotiabank and the Toronto-Dominion Bank, to increase the corporation’s revolving credit facility to $85,000, a rise of $30,000 since the previous loan increase.
H2O Innovation’s inaugural blue loan was inspired by the Guidelines for Blue Finance, developed by the International Finance Corporation in January 2022, and is specifically designed to support investment in ocean-friendly projects and critical clean water resource protection. This loan will allow H2O Innovation to accelerate its growth and continue the diversification of its activities to different markets. With this increased credit facility, the corporation will be poised to expand its manufacturing capabilities to respond to the growth of its water technologies and services business line and to further develop its mobile fleet capacity to meet the rising demand for such units. Moreover, it will enable the corporation to prepare for tuck-in acquisitions and continue its strategy of consolidation of the water industry.
“This new share of the credit facility will allow our different pillars to grow through mergers and acquisitions as well as investment in capital expenditures,” Frédéric Dugré, president and CEO of H2O Innovation, said. “As we work towards a five-year growth plan, this agreement creates new opportunities for us to reach our goals. This will provide not only increased flexibility but also gains in efficiency.”
