Vigeo Eiris provided Avangrid with an independent opinion for a new sustainable syndicated loan signed in the United States
Avangrid has entered into a revolving credit facility including an innovative sustainability-based price-adjustment mechanism
Taking example on its Spanish parent company Iberdrola, Avangrid aims at demonstrating its achievements with regards to sustainability through a sustainable finance deal.
This facility of $2.5 billion will finance the company’s general needs. The Spanish bank BBVA, acting as “Sustainable Agent”, cooperated with Avangrid to adjust the credit margin to the company’s sustainable performance based on one sustainability indicator: its greenhouse gas emissions intensity.
Vigeo Eiris was commissioned to provide an independent opinion on the integration of environmental factors in the RCF and based the review of two components: the consistency of the selected indicator; and the level of ambition of the established variation of this indicator for adjusting the margin.
This innovative credit transaction is the first of its kind in the United States and may be followed by other operations in Northern America.