Vena Energy Secures $500 Million Green Credit Facility from Eight Lenders

ING Bank and BNP Paribas acted as joint green structuring advisors for the transaction


Renewable independent power producer Vena Energy has signed its first sustainability-linked revolving credit facility of JPY52.8 billion (~$500 million) from eight lenders.

A revolving credit facility is a line of credit provided by a financial institution and a corporate entity. The facility will have a maximum amount stipulated and the company can access the funds whenever needed.

The financers include BNP Paribas, Crédit Agricole CIB, DBS Bank Ltd, ING Bank, MUFG, Intesa, SMBC and Mizuho.

ING Bank and BNP Paribas acted as joint green structuring advisors for the transaction.

Provided by leading environmental, social, and corporate governance-focused lenders, the credit facility complements Vena Energy’s capital structure with a flexible liquidity facility alongside the longer-term green bonds in place, said the company.

Covering three years, the sustainability loan will concentrate on key areas such as environmental impact, workplace diversity, and health and safety. The program is aimed at contributing towards achieving the United Nations Sustainable Development Goal (SDG) 13 Climate Action. The financial activity is also in line with the firm’s green financing framework. These categories include hydropower, solar energy, and wind energy under the renewable energy sector.

“As a purely renewable energy company, sustainability is at the heart of all our activities at Vena Energy, and this transaction further demonstrates our commitment to the environment, diversity, and health and safety in our workplace,” said Nitin Apte, Chief Executive Officer of Vena Energy.

“We believe this extension of our liquidity facilities will strengthen our financial position to further expand our renewable projects across the region, as well as aligning our ESG and financial performance to deliver a positive impact to the environment, our stakeholders, and our host communities,” Apte added.

ING’s ad interim head of Wholesale Banking APAC, Remko Witteveen said, “We are proud that ING is supporting Vena Energy’s efforts to integrate its sustainability ambitions with its capital structure, and at the same time deepen our commitment to helping our clients address climate risks through our expertise in sustainability.”

Bruce Weller, Managing Director and Head of Power and Project Finance APAC, BNP Paribas, shared, “With Vena Energy’s socially conscious approach towards combating climate change and decarbonizing the economy, the sustainability-linked RCF extended to it will help produce tangible ESG benefits beyond renewable energy.”

The credit facility follows the company’s $325 million green bond issuance in 2020, the first corporate USD green bond issued by a Singapore-based firm.

The firm has been actively participating in renewable energy auctions in India.

According to Mercom India Solar Project Tracker, Vena Energy has 200 MW of solar projects in operation and 300 MW (including 160 MW of wind projects blended with) in the pipeline.