Green Firm Vena Energy Bags $500 mn Credit Facility from 8 lenders

Vena Energy announced yesterday that it has signed its first sustainability-linked revolving credit facility of JPY52.8 billion (approximately US$500 million) from eight lenders including BNP Paribas, Crédit Agricole CIB, DBS Bank Ltd, ING Bank, MUFG, Intesa, SMBC and Mizuho.

The company is an independent power producer and an integrated pure-renewable energy company in the Asia-Pacific region.

Nitin Apte, CEO of Vena Energy, said, “We believe this extension of our liquidity facilities will strengthen our financial position to further expand our renewable projects across the region, as well as aligning our ESG and financial performance to deliver a positive impact to the environment, our stakeholders, and our host communities.”

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ING Bank and BNP Paribas acted as joint Green Structuring Advisors for the transaction.

The three-year RCF was structured as a sustainability-linked loan and includes key performance indicators (KPIs) related to environmental impact, workplace diversity, and health & safety, contributing to the achievement of the United Nations Sustainable Development Goal (SDG) 13 “Climate Action” and in line with Vena Energy’s Green Financing Framework.

Bruce Weller, Managing Director and Head of Power and Project Finance APAC, BNP Paribas, said, “With Vena Energy’s socially conscious approach towards combating climate change and decarbonising the economy, the sustainability-linked revolving credit facility extended to it will help to produce tangible ESG benefits beyond renewable energy,” adding, “Transactions such as these allow BNP Paribas and other lenders to take a more direct role in accelerating sustainable energy transition in Asia.”

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The sustainability linked RCF follows Vena Energy’s US$325 million green bond issuance in 2020, which was the first corporate USD green bond issuance by a Singapore-based company. Provided by leading ESG-focused lenders, the RCF complements Vena Energy’s capital structure with a flexible liquidity facility alongside the longer-term green bonds in place.

Last year, the company made headlines when it announced the successful issuance of a benchmark USD 325 million (5-year 3.133 percent fixed rate) green bond offering. This was the first corporate USD Green Bond issuance from a Singapore-based company.