19th Aug 2021 10:47
(Alliance News) - John Wood Group PLC on Thursday said it has agreed a USD600 million government-backed loan linked to emissions targets and sustainable infrastructure.
Wood is an engineering and consultancy business for the energy industry based in Aberdeen.
The FTSE 250-listed firm said it is the first to access the Transition Export Development Guarantee - a new facility designed to enable UK exporting companies to invest in low-carbon markets including renewables, hydrogen and decarbonisation.
The loan is 80% guaranteed by the government's export credit agency UK Export Finance. The facility has a term of five-years, beginning last month.
The UK government said the facility was co-ordinated by Citigroup Inc and BNP Paribas SA, who also acted as mandated lead arrangers alongside ABN Amro Bank PLC, HSBC UK Bank PLC, Lloyds Banking Group PLC and The Royal Bank of Scotland PLC.
"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. 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," said Chief Financial Officer David Kemp.
International Trade Secretary Liz Truss added: "Wood has already made great strides in repositioning its business for a low-carbon future. I am delighted it is the first company to energise its clean growth plans using UKEF’s new Transition Export Development Guarantee, which will support thousands of green jobs."
Also in July, Wood repaid unrelated bilateral term loans of USD300 million maturing in May 2022.
Shares in John Wood were trading down 0.9% at 236.30 pence each in London on Thursday morning.
By Scarlett Butler; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Wood Group (J)