Bord na Móna has put in place a new €160m revolving credit facility along with a €180m letter of credit facility with Bank of Ireland, BNP Paribas and ING.

The company said the new debt facilities will be used to meet working capital requirements and to facilitate the build out and operation of renewable energy assets.

In addition to the €340m RCF and LoC facilities, the company has also renewed an additional €90m facility directly with Bank of Ireland.

In aggregate, the funding arrangement is the largest ever secured by the state-owned company.

The company said the RCF facility is sustainability linked and includes an interest rate adjustment mechanism based on the achievement of certain sustainability targets.

In Association with

The facilities have the option to extend the maturity date by up to a further two years, which the company said will provide greater flexibility in support of Bord na Móna’s future investment plans.

The government’s Climate Action Plan calls for 80% electricity to be generated from renewable sources by 2030.

Bord na Móna currently supplies c.10% of renewable energy in Ireland.

Bord na Móna group treasurer Joe Coleman commented: “These facilities provide us with the necessary working capital to strengthen and expand our renewable energy portfolio.

"Access to funding and ongoing support from lenders such as Bank of Ireland, BNP Paribas and ING provides certainty and allows us to maintain our strong momentum. As a group Bord na Mona will have significant funding requirements over the coming years”.

CFO JP McGrath added: “With this funding arrangement in place the bigger picture for Bord na Móna is that it paves the way for us to develop additional renewable assets with a combined value of €2.7 billion across our renewable energy portfolio.”