ESB Strikes Deal For Landmark Sustainability Linked Loan

Ireland's national electricity company ESB has embarked into the sustainable finance markets for the second time with a new €1.4 billion five-year sustainability linked loan.

Becoming the first Irish utility to do, ESB has struck a deal for the Syndicated Sustainability linked loan (SLL) provided by 14 international banks. The SLL involves the refinancing of its existing revolving credit facility (RCF).

As agreed with the lenders, the SLL contains specific KPIs directly linked to ESB's Brighter Future Strategy and its commitment to leading the transition to a reliable, affordable, low-carbon energy future. The KPIs are also fully aligned with the Irish Government's Climate Action Plan.  

Specifically, the KPIs relate to the reduction of carbon emissions from ESB's generation fleet and increasing the amount of energy produced from renewable technologies. Meeting these specific KPIs will result in a lower interest rate for ESB.


ESB's total renewable capacity is on target to increase to almost 1GW in the coming months once Grousemount Wind Farm in Co Kerry comes into commercial operation. Through a number of strategic partnerships, ESB is also progressing other renewable projects in solar, battery, onshore and offshore wind in Ireland and the UK.

Pat Fenlon, ESB Executive Director, Group Finance and Commercial, said: "The use of green finance, including this sustainability linked loan and our recent Green Bond, further demonstrates ESB's commitment to leading the transition to a low-carbon future while addressing the requirements of today's financial markets who are directing increasing levels of capital into carbon action investments. By having sustainability at the heart of our operations, we can maintain a viable and successful business with the financial strength to invest in this future for all our customers.

"As always, we aim to meet customer energy needs by bringing the best of our capabilities together to deliver innovative and value-driven solutions for a low-carbon world," added Mr Fenlon.

BNP Paribas acted as Sustainability Coordinator on the SLL and Billy Quinlan, Head of Global Banking Ireland, BNP Paribas commented: "We are proud to work with ESB as they transition towards a low-carbon energy future, based on clean, reliable, affordable electricity. This SLL is a great example of how sustainable finance can be effectively deployed to support our clients' efforts to contribute towards climate action, in line with the United Nations Sustainable Development Goals and Principles for Responsible Banking."

(CM/JG)