Drax Group has refinanced the Canadian dollar facilities it acquired as part of its acquisition of Pinnacle Renewable Energy in April, it announced on Tuesday.
The FTSE 250 company said the new CAD 300m (£173.42M) term facility matures in 2024, with an option to extend by two years.
It said it has a customary margin grid referenced over CDOR.
“The facility further reduces the group’s all-in cost of debt to below 3.5%, and includes an embedded environmental, social and governance component, which adjusts the margin payable based on Drax’s carbon intensity measured against an annual benchmark,” the board said in its statement.
“The facility, along with surplus cash, replaces Pinnacle’s approximately CAD 435m facilities which had a cost of over 5.5%.”
