BNP Paribas & Northland with Export Development Canada to Close Sustainability-Linked LC Facility

Source: www.gulfoilandgas.com 5/9/2022, Location: North America

BNP Paribas, a leading global bank, announced that it has recently closed an amendment to add sustainability-linked incentives to its Letter of Credit (“LC”) Facility with renewable power producer, Northland Power Inc. (“Northland”).

Northland converted its $50 million bilateral LC Facility with BNP Paribas to a sustainability-linked agreement, which is backed by Canada’s export credit agency, Export Development Canada (“EDC”). This marks EDC’s first sustainability-linked LC facility, which will support Northland’s current and future renewable energy growth strategy, including offshore wind projects across the globe. EDC’s bonding solutions, offered in partnership with private sector financial institutions, help free up the working capital that companies need to operate.

This LC facility also represents Northland’s second sustainability-linked credit facility, after Northland renewed, extended and converted its CAD $1 billion revolving credit facility (“RCF”) to a sustainability-linked loan (“SLL”) structure in September 2021. The SLL structure aligns with Northland’s Green Financing Framework, unveiled in the first half of 2021. The five-year RCF features a pair of KPIs with targets linked to increasing Northland’s renewable energy generation and reducing carbon intensity. BNP Paribas acted as a co-sustainability structuring agent on the SLL.

"EDC is pleased to partner with BNP Paribas through our bonding program to support Northland Power as it scales up its renewable power generation capacity," said Guillermo Freire, Senior Vice President, Mid-Market, and responsible for EDC’s cleantech practice. "This sustainability-linked LC facility for Northland Power is a good example of how industry partners can work together to help Canadian companies grow internationally, support the global energy transition, and help build an innovative and sustainable future.”

Northland continues to progress its plan to double its renewable power generating capacity by the end of the decade. Northland’s plan includes developing and operating a portfolio of large- scale offshore wind projects in Europe and Asia, further adding to its offshore wind portfolio, where it is already the fourth largest owner and operator generating capacity globally.

“BNP Paribas is very proud to be a strategic partner to corporations actively participating in the fight against climate change. We are dedicated to working with our corporate clients to identify tailored solutions that align with their specific efforts and commitments toward achieving their ESG goals”, said Rod O’Hara, Head of Canada Corporate Coverage of BNP Paribas. “We couldn’t be happier to continue our partnership with Northland Power, as the company progresses on its sustainability journey, and to support EDC with its inaugural sustainable transaction.”

BNP Paribas acted as Sole Structuring Agent. Elsewhere in Canada, the Bank has played key roles in several noteworthy sustainability-linked transactions. By using innovative financing solutions, Canadian corporates have a unique opportunity to create the economy of the future.


United Kingdom >>  8/9/2022 - AIM-listed Union Jack Oil, a UK focused onshore hydrocarbon production, development and exploration company, has announced a further update on the red...
Canada >>  8/8/2022 - International Petroleum Corporation (IPC or the Corporation) (TSX, IPCO) is pleased to announce that IPC repurchased a total of 144,000 IPC common sha...

Norway >>  8/8/2022 - The below information is released to provide Magseis Fairfield shareholders updated financial information in connection with the announced voluntary e...
United States >>  8/8/2022 - Invinity Energy Systems plc (IES), a leading global manufacturer of utility-grade energy storage , is pleased to announce the commencement of U.S. tra...

United States >>  8/8/2022 - Diversified Energy Company PLC (LSE: DEC) is pleased to announce its Interim Results for the six months ended 30 June 2022 and other recent highligh...
United States >>  8/8/2022 - Prospera Energy Inc. ("Prospera") (FRA) is pleased to release its Q1 2022 financial and operating results. Selected financial and operational informat...




Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.