Refinancing of Sustainability Linked RCF
13 June 2024
JLEN ENVIRONMENTAL ASSETS GROUP LIMITED
("JLEN" or the "Company")
Refinancing of Sustainability Linked Revolving Credit Facility
JLEN, the listed environmental infrastructure fund, is pleased to announce that it has refinanced a three-year facilities agreement providing for a committed multicurrency revolving credit facility ("RCF") of £200 million with an uncommitted accordion facility of up to £30 million and an uncommitted option to extend for a further year. Taken together this provides £30 million increased funding capability over the previous facility.
The RCF provides a valuable source of flexible funding, with both Sterling and Euro drawdowns available at a margin of 210bps over SONIA (Sterling Overnight Index Average) for Sterling drawings and Euribor (Euro Interbank Offered Rate) for Euro drawings.
The RCF qualifies as a Sustainability Linked Loan ("SLL") under the latest Loan Market Association SLL principles. The aim of an SLL is to support sustainable economic activity and growth, with interest rates linked to meeting certain agreed sustainability goals. Therefore, interest charged on the facility is linked to the Company's Environmental, Social and Governance ("ESG") performance, with JLEN incurring a 5bps premium or discount to its margin based on performance against defined ESG-linked targets.
Performance against targets is measured annually, with the cost of the RCF being amended in the following financial year.
The lenders under the RCF remain unchanged (HSBC, ING, National Australia Bank, Royal Bank of Scotland International and Clydesdale Bank).
Ed Warner, Chair commented: "I'm delighted that JLEN has secured another three years of stable financing at attractive terms - supporting our capital allocation strategy as part of a number of ongoing measures to ensure that JLEN is as attractive as possible to current and potential investors. We are also pleased to have achieved Sustainability Linked Loan status, demonstrating our ongoing commitment to sustainable infrastructure investment."
-ENDS-
For further information and enquiries, please contact:
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Foresight Group Chris Tanner |
+44(0)20 3667 8100
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Winterflood Securities Limited Neil Langford |
+44(0)20 3100 0000
|
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SEC Newgate Elisabeth Cowell |
+44 (0)20 3757 6882 Jlen@secnewgate.co.uk
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Apex Fund and Corporate Services (Guernsey) Limited Matt Lihou |
+44 (0)20 3530 3600 |
About JLEN
JLEN's investment policy is to invest in a diversified portfolio of Environmental Infrastructure. Environmental Infrastructure is defined by the Company as infrastructure assets, projects and asset-backed businesses that utilise natural or waste resources or support more environmentally friendly approaches to economic activity, support the transition to a low carbon economy or which mitigate the effects of climate change. Such investments will typically feature one or more of the following characteristics:
· long-term, predictable cash flows, which may be wholly or partially inflation-linked cash flows;
· long-term contracts or stable and well-proven regulatory and legal frameworks; or
· well-established technologies, and demonstrable operational performance.
JLEN's aim is to provide investors with a sustainable, progressive dividend per share, paid quarterly and to preserve the capital value of the portfolio over the long term on a real basis. The target dividend for the year to 31 March 2025 is 7.80 pence per share1.
JLEN is an Article 9 fund under the EU Sustainable Finance Disclosure Regulation and has a transparent and award winning approach to ESG.
Further details of the Company can be found on its website www.jlen.com
LEI: 213800JWJN54TFBMBI68
(1) These are targets only and not profit forecasts. There can be no assurance that these targets will be met or that the Company will make any distributions at all.
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