John Wood Group PLC (LSE:WG.) said it secured a US$600mln (£430mln) five-year loan backed by the UK government’s export credit agency to enable it to invest in low-carbon growth opportunities.
The consulting and engineering group is the first company to access the Transition Export Development Guarantee (TEDG), a new facility set up to support UK exporting companies with working capital to invest in low-carbon growth markets including renewables, hydrogen and decarbonisation.
"The UK government's decision to select Wood as a debut issuer for this new facility is a strong endorsement of our energy transition strategy,” said David Kemp, chief financial officer of the FTSE-250 group.
“The loan will provide a source of working capital to invest in unlocking the many low-carbon growth opportunities we can see across our business."
The loan, effective from July 2021, is from a group of six of Wood's relationship banks and is 80% guaranteed by UK Export Finance, the government's export credit agency.
The company also said it repaid bilateral term loans of US$300mln, with a maturity date of May 2022, last month.