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Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Drax strikes £450m sustainability-linked RCF

(Sharecast News) - Power generation business Drax said on Tuesday that it has struck a new sustainability-linked £450.0m revolving credit facility. Drax said the new facility matured in 2027, with options to extend by two years, providing it with additional liquidity and replacing its current £300.0m RCF, due to mature in 2026.

The FTSE 250-listed group added that the facility has a customary margin grid referenced over Sterling Overnight Index Average, with adjustments linked to certain Scope 1, 2 and 3 carbon emissions which were based on the firm's 2030 SBTi targets.

Separately, Drax revealed it has also completed a £50.0m term-loan facility which matures in 2028 with a one-year extension option. The term loan has a customary margin referenced over SONIA and will be used for general corporate purposes.

As of 0855 BST, Drax shares were down 0.45% at 664.0p.

Reporting by Iain Gilbert at Sharecast.com

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