Bank syndicate provides SEK 3 billion sustainability-linked financing to Stockholm Exergi
A bank syndicate consisting of Danske Bank, Skandinaviska Enskilda Banken and Swedbank have entered into a sustainability-linked revolving credit facility of SEK 3 billion with Stockholm Exergi as borrower.
The terms for the credit facility were amended during March 2021, whereby the facility was linked to certain of Stockholm Exergi’s sustainability performance targets. The sustainability link means that the interest rate for the credit facility can be adjusted up or down by 2.5 basis points annually based on four sustainability criteria, in relation to which Stockholm Exergi must have achieved predefined improvements.
The criteria are:
- Number of major environmental hazards
- Number of accidents leading to sick leave per million hours worked (LWIF)
- CO2 emissions per tonne of treated waste
- Number of heat optimisation contracts that help customers save energy
Stockholm Exergi provides access to heating, cooling, electricity and waste management services in the Stockholm region. With its common cycle, the company serves over 800,000 Stockholmers with heating. The company also cools hospitals, data centers and other important functions, and produces electricity that enables the city to grow and develop.
The bank syndicate was advised by Mannheimer Swartling in connection with the entering into of the revolving credit facility and the incorporation of the sustainability criteria.