AVANGRID Enters into Sustainability-Linked Revolving Credit Facility

New Credit Facility will Support the Company’s Clean Energy Goals

ORANGE, Conn.--()--AVANGRID, Inc. (NYSE: AGR), a leading sustainable energy company, today announced that the Company has entered into its first syndicated sustainability-linked credit facility as the next step in its ongoing efforts to financially support projects geared to AVANGRID’s commitment to safeguarding the environment, reducing its carbon footprint and growing as a sustainable company.

“Development of clean energy and respect for the environment are pillars of our energy production model and our operations. This new financial tool will allow us to reduce our interest rate by meeting targets on environmental sustainability and renewable energy generation.”

This innovative sustainability-linked pricing mechanism allows AVANGRID to adapt liquidity to its $14.4 billion investment plan for the 2017-2022 period, while fulfilling its commitment to a competitive and clean energy future and still delivering strong financial results.

The $2.5 billion revolving credit facility closed today and will extend tenor for five years until 2023, and will have 21 lenders participating. Adjustments to the loan pricing will be based on AVANGRID’s continuing reduction in emissions intensity.

"Our values shape our approach to the environment and our responsibility to our stakeholders, where sustainability and financial results are intrinsically linked," said James P. Torgerson, AVANGRID’s chief executive officer. “Development of clean energy and respect for the environment are pillars of our energy production model and our operations. This new financial tool will allow us to reduce our interest rate by meeting targets on environmental sustainability and renewable energy generation.”

In November 2017, AVANGRID issued its inaugural “green” bonds under AVANGRID’s newly adopted Framework for Green Financing, a set of guidelines and commitments for AVANGRID’s green financing activities that are consistent with the Green Bond Principles published by the International Capital Markets Association. The bond offering was nearly four times oversubscribed and attracted many green-focused investors. The nearly $600 million raised has been used to support investment in three AVANGRID renewable generation projects.

Sustainable finance is also part of AVANGRID’s commitment to the UN Sustainable Development Goals (SDG) for 2030, which AVANGRID has incorporated into its strategy. Specifically, AVANGRID is focused on affordable and clean energy and climate action with clean energy goals that include:

  • A pledge to be carbon neutral by the year 2035;
  • Focus on increasing our renewable installed generation capacity by more than 30% by the year 2020; and
  • A clear objective to reduce emissions intensity by 25% by 2020 vs 2015.

JP Morgan, Bank of America Merrill Lynch, MUFG, Santander and Banco Bilbao Vizcaya Argentaria (BBVA) acted as joint lead arrangers for the facility. BBVA acted as “Sustainability Agent.”

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Forward Looking Statements: This press release contains a number of forward-looking statements. Forward-looking statements may be identified by the use of forward-looking terms such as “may,” “will,” “should,” “can,” “expects,” “future,” “would,” “could,” can,” “expect(s,)” “believe(s),” “anticipate(s),” “intend(s),” “plan(s),” “estimate(s),” “project(s),”“assume(s),” “guide(s),” “target(s),” “forecast(s),” “are (is) confident that” and “seek(s)”“can,” “expects,” “believes,” “anticipates,” “intends,” “plans,” “estimates,” “projects,” “assumes,” “guides,” “targets,” “forecasts,” “is confident that” and “seeks” or the negative of such terms or other variations on such terms or comparable terminology. Such forward-looking statements include, but are not limited to, statements about our plans, objectives and intentions, outlooks or expectations for earnings, revenues, expenses or other future financial or business performance, strategies or expectations, or the impact of legal or regulatory matters on business, results of operations or financial condition of the business and other statements that are not historical facts. Such statements are based upon the reasonable current beliefs, expectations, and assumptions of our management and are subject to significant risks and uncertainties that could cause actual outcomes and results to differ materially. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, without limitation: our future financial performance, anticipated liquidity and capital expenditures; actions or inactions of local, state or federal regulatory agencies; success in retaining or recruiting, our officers, key employees or directors; changes in levels or timing of capital expenditures; adverse developments in general market, business, economic, labor, regulatory and political conditions; fluctuations in weather patterns; technological developments; the impact of any cyber-breaches, grid disturbances, acts of war or terrorism or natural disasters; the impact of any change to applicable laws and regulations affecting operations, including those relating to environmental and climate change, taxes, price controls, regulatory approvals and permitting; and other presently unknown or unforeseen factors.

Additional risks and uncertainties are set forth under the “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017 and our Quarterly Report on Form 10-Q for the three months ended March 31, 2018, which are on file with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may vary in material respects from those expressed or implied by these forward-looking statements. You should not place undue reliance on these forward-looking statements. We do not undertake any obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this press release, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

About AVANGRID: AVANGRID, Inc. (NYSE: AGR) is a leading, sustainable energy company with $31 billion in assets and operations in 24 U.S. states. AVANGRID has two primary lines of business: Avangrid Networks and Avangrid Renewables. Avangrid Networks owns eight electric and natural gas utilities, serving 3.2 million customers in New York and New England. Avangrid Renewables owns and operates 7.1 gigawatts of electricity capacity, primarily through wind power, with a presence in 22 states across the United States. AVANGRID employs approximately 6,500 people. AVANGRID supports the U.N.’s Sustainable Development Goals, received a Climate Development Project climate score of “A-,” the top score received in the utilities sector, and has been recognized for two consecutive years by Ethical Boardroom as the North American utility with the “best corporate governance practices.” For more information, visit www.avangrid.com.

Contacts

AVANGRID
Media:
Michael A. West, Jr., 203-499-3858
Michael.West@avangrid.com

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