EDF and BBVA signed a €300 million sustainability-linked revolving credit facility (RCF) which incorporates a pricing adjustment based on EDF’s sustainability performance linked to CO2 emissions and energy efficiency.
With this transaction, BBVA reached another milestone in the sustainable finance field, as this is the first sustainable loan that BBVA arranges for a corporate in France.
The RCF incorporates a pricing adjustment mechanism that links the margin to three of EDF’s sustainable KPIs: direct CO2 emissions, customers’ use of online consumption monitoring tools and electrification of its vehicle fleet.
France is at the forefront of sustainable finance in Europe. Corporates are showing a greater interest in the sustainable finance solutions currently available in the loan market. More particularly, borrowers have welcomed the possibility to add sustainable mechanisms to their general corporate purpose facilities, further reinforcing a trend towards the conversion of standard facilities into financing with a positive social and environmental impact.
Xavier Girre, Senior Executive Vice-President, Group Finance, EDF, said: ”This third ESG-Indexed RCF brings to almost 4.5 billion euros the total amount of sustainability-linked credit facilities for the EDF Group. It confirms that sustainable finance instruments are core to EDF’s financing strategy.”
Hedi Ben Salem, Head of Corporate Loans Europe & Asia, comments: “BBVA is particularly pleased with this transaction. It not only strengthens our relationship with EDF but also consolidates our position as a leading structuring bank of sustainable finance solutions in the European loan market”.
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