Drax Group (LSE:DRX) PLC has unveiled a new £450 million carbon emission-linked revolving credit facility after a debt refinance.
This matures in 2027 and is linked to the sterling overnight index average, replacing a current £300 million facility which has been retired for cash, Drax said on Tuesday.
Interest rates on the new facility will also be adjusted in line with the biomass power firm’s carbon emissions against 2030 sustainability targets.
Drax noted the new facility would provide additional liquidity, with this coming as the company awaits a government decision on support for plans to fit carbon capture at its North Yorkshire biomass plant.
Though the £2 billion plan has been approved, Drax is yet to press ahead with the project as it looks to secure further publicly-funded subsidies beyond 2027 to support power production at its wood-burning plant.
Drax has claimed £7 billion in such clean energy subsidies since 2012, drawing scrutiny after research this month found its plant was the UK’s largest source of emission last year.
Another £50 million term-loan facility was also unveiled on Tuesday, with Drax noting this would be used for general corporate purposes.