White & Case has advised a syndicate of banks including Santander Bank Polska S.A., Bank Gospodarstwa Krajowego, Powszechna Kasa Oszczednosci Bank Polski S.A., Caixabank S.A., Oddzial w Polsce, and MUFG Bank N.V., on Energa's PLN 2 billion ESG-linked revolving credit facility. Allen & Overy advised Energa on the deal.
According to White & Case, this is the first loan agreement in Poland with financing terms and conditions closely linked to the borrower's performance against environmental, social, and governance criteria. According to the firm, “ESG-linked financing has grown rapidly in recent years, with a global value in 2018 of USD 77.2 billion that represented a 60 percent increase on the previous year.”
The revolving credit facility expires in 2024 with an option to extend to 2026. The loan margin will depend on Energa's performance in three areas of sustainable development: care for the natural environment, social responsibility, and corporate governance. These ESG indicators will be verified on an annual basis by Vigeo Eiris – an independent international rating agency that is part of the Moody's group that specializes in ESG issues. In addition, the agreement prohibits the use of loan proceeds for coal power.
The White & Case team included Partner Tomasz Ostrowski and Associate Katarzyna Jakubiak.
The Allen & Overy team was led by Senior Associate Konrad Zawistowski, supported by Partner Piotr Lesinski and Senior Associate Anna Madra.