ESB has signed a new €1.35 billion credit facility with a syndicate of thirteen banks, which will enable the company to draw down bank finance as required up to February 2018. The new five-year agreement replaces an existing facility signed in 2010, which was due to expire within the next two years.
The banks participating in the syndicate are Barclays, BBVA, BNP Paribas, Danske Bank, RBC, RBS/Ulster Bank, Bank of America/Merrill Lynch, HSBC, Societe Generale, Deutsche Bank, Bank of Ireland, AIB and JP Morgan. RBS acted as co-ordinator for the transaction.
Commenting today, Donal Flynn, Finance Director of ESB said; “This transaction represents a major vote of confidence in ESB and in Ireland by the international banking sector. It will ensure that ESB has access to the bank liquidity it needs over the next five years to support our ongoing investment in Ireland’s energy infrastructure”.
Unlike a loan which must be drawn down in full upfront, the credit facility allows ESB to draw down borrowings as needed at any stage over the five year period.