Sparks - Jersey Electricity

Jersey Electricity has completed a significant enhancement of its long-term financing arrangements, comprising a new £100m sustainability-linked revolving credit facility (RCF) with an additional uncommitted accordion of up to £50m, alongside amendments to its existing £30m USPP notes and the establishment of a new $150m uncommitted shelf facility. The RCF, provided by Lloyds, NatWest and HSBC, is unsecured, carries a margin of 0.85% above SONIA and has an initial five-year maturity with two one-year extension options. The existing USPP notes, secured in 2014 with PGIM, have been supplemented by the new shelf facility, which has a five-year availability period, can be issued in either US dollars or pound sterling and has a maximum average life and final maturity of up to 30 years.

The facilities are intended principally to support JEL’s previously announced £180m five-year capital investment programme, focused on modernising and increasing the capacity of its transmission and distribution network, strengthening its position in renewable energy, accelerating the decarbonisation of homes and businesses and increasing energy independence and resilience. The RCF also incorporates sustainability-linked environmental and safety performance targets which may result in favourable margin adjustments. Management expects to utilise the facilities progressively in line with project milestones and capital expenditure requirements.