Vestas Secures New EUR 2Bn Sustainability-Linked Revolving Credit

On the back of a strong credit rating obtained from Moody’s earlier this year, Danish wind turbine maker Vestas has signed a EUR 2 billion revolving multi-currency credit facility with a group of leading banks.

April 30, 2021. By Manu Tayal

On the back of a strong credit rating obtained from Moody’s earlier this year, Danish wind turbine maker Vestas has signed a EUR 2 billion revolving multi-currency credit facility with a group of leading banks.

The facility’s margin will be closely linked to the company’s sustainability KPIs. It also replaces the company’s undrawn EUR 1,150 million revolving credit facility signed in 2017.

Further, the facility is available for general corporate purposes, including guarantees issuance in relation with wind power projects, carries a 5-year tenor with 2 one-year extension options.

The successful transaction underlines a growing confidence in the company’s continued financial and operational transformation, as well as in the significant projected growth of renewable energy in near future, Vestas said.

“With this sustainability linked loan agreement, Vestas is demonstrating the inherent value in combining our commercial and sustainability strategies. We can now further strengthen our ability to improve sustainability performance, both across our direct operations, and across our indirect footprint,” said Lisa Ekstrand, Senior Director and Head of Sustainability at Vestas.

The facility’s interest rate margin will be adjusted based on sustainability-linked performance targets, marking the first time the company has been engaged with sustainability-linked financing.

Commenting on the development, Marika Fredriksson, Executive Vice President and CFO of Vestas, said, “at Vestas, we are striving to accelerate the deployment of renewable energy by building scale and driving growth across our business. We are also committed to ensuring this growth safeguards the interests of future generations, and supports a more sustainable planet. Following the strong credit rating from Moody’s obtained earlier this year, strengthening our financial capabilities is the next natural step in this journey, and linking interest rates margins with Vestas’ sustainability performance reinforces our ambition to integrate sustainability into everything we do.”

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