(Bloomberg) -- Singapore-based energy trader Jera Global Markets Pte. is seeking to bring in more lenders for a $900 million revolving credit facility that incorporates environment-related metrics linked to its fee structure, according to people familiar with the matter.
The syndicated loan’s interest rate — paying an interest margin of 50 basis points over the secured overnight financing rate — would vary depending on the borrower’s achievement of certain environmental, social and governance-related goals, the people said. The metrics include carbon dioxide emissions, renewable energy development capacity, ammonia offtake and carbon intensity measurement, according to the loan’s terms seen by Bloomberg News.
Jera Global’s facility, labeled as a key performance indicator-linked financing in the term sheet, is unlike a sustainability-linked loan, which is subject to stricter guidelines, the people said. The company’s latest financing structure is rare in the loans market.
The performance-linked financing is in line with Jera Global’s long-term strategy to shift its business operations toward decarbonization, the people said. The company aims to establish a sustainable finance framework, they said.
Jera Global didn’t respond to a request for comment.
The deal’s mandated lead arrangers and bookrunners include ANZ, DBS Bank, First Abu Dhabi Bank, Mizuho Bank and Oversea-Chinese Banking Corp. Nine other banks joined the borrowing prior to the syndication launch, indicating a strong interest for the loan.
Jera Global is a joint venture between Jera Co., Japan’s biggest power producer, and the trading arm of France-based utility Electricite de France SA.
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