Drax secures £160m infrastructure term loan facilities deal

Drax Power Station has signed up to a new infrastructure term loan facilities agreement.

It provides committed facilities of approximately £160m with a range of maturities between 2024 and 2030, further extending Drax’s debt maturity profile.

Along with Drax’s existing borrowing, including a carbon-linked ESG facility which was recently extended to 2025, this agreement further reduces the Group’s all-in cost of debt below 4%.

The agreement also includes an option for Drax to obtain up to a further £75m of facilities, if agreed between Drax and its lenders. If utilised, these additional facilities could have a maturity of up to 2030.

The facilities under this agreement also have a delayed draw and proceeds are expected to be used in the ordinary course of business.