Voltalia Secures €294 Million Syndicated Loan to Boost Renewable Energy Development and Refinance Convertible Bonds

Voltalia has signed a new corporate loan of 294 million euros with a consortium of 15 banks. This credit facility is currently being syndicated, which will increase its total amount beyond 294 million euros. It complements other corporate syndicated loans, providing Voltalia with additional resources for development and the refinancing of its convertible bonds.

The 294 million euros syndicated financing, with a maturity of 5 years extendable to 7 years, consists of a 176.4 million euros revolving credit facility and a 117.6 million euros term loan. The revolving credit includes a swingline, and the term loan can be activated for up to two years, offering greater flexibility.

This new financing enhances the Group’s financial flexibility, allowing for the acceleration of new power plant construction without waiting for the finalization of long-term project financing. It will also support the repayment of convertible bonds issued in 2021 and 2022, totaling 250 million euros, upon their maturity in 2025. “This new syndicated bank loan extends the average maturity of our corporate financing and strengthens our financial flexibility to support growth. This operation demonstrates the trust of our banking partners, old and new, whom we warmly thank. This is an “impact” financing whose cost will be linked to the achievement of extra-financial objectives that we announced in September 2023 as a Mission-driven company”, comments Sébastien Clerc, Chief Executive Officer of Voltalia.

The funding supports activities that contribute to climate change mitigation, aligning with EU taxonomy and decarbonization objectives. The interest rate of this “impact” financing is subsidized if certain extra-financial performance objectives are met, including occupational health and safety performance, CO2 emissions reduction, and land co-use. As a Mission-driven company, Voltalia seeks the support of its stakeholders, particularly banks, for its extra-financial goals.