STX Group, an environmental commodity trader and climate solutions provider, closed an up to €150 million ($165.79 million) syndicated borrowing base credit facility to foster the expansion of its business operations. The credit facility, which was oversubscribed, is partially secured by a portfolio of environmental commodities.
“With the energy transition in the heart of STX, we have been in the business of decarbonization for a long time, and are therefore pleased to see a group of mainstream global banks finally recognizing the underlying value of the wider range of environmental commodities,” Bart Wesselink, chief financial and risk officer at STX Group, said. “The participating banks’ willingness to collaborate and innovate environmentally marks a pivotal step for the rapidly growing industry in which we are a market maker, as it enables greater access to financing and promotes a level playing field for contributors to the energy transition.
“The banking community is used to accepting biofuels and financial instruments, such as European Union (EU) Emission Allowances, as collateral, but we believe this is the first time that environmental commodities, such as guarantees of origin, renewable gas certificates and various national compliance certificates were accepted as collateral.”
The facility consists of a committed portion of €75 million ($82.89 million) and an uncommitted accordion feature of €75 million ($82.89 million). The facility is provided by a syndicate of banks.
