AVANGRID Enters into Sustainability-Linked Revolving Credit Facility
New Credit Facility will Support the Company’s Clean Energy Goals
AVANGRID, Inc. (NYSE: AGR), a leading sustainable energy company, today announced that the Company has entered into its first
syndicated sustainability-linked credit facility as the next step in its ongoing efforts to financially support projects geared to
AVANGRID’s commitment to safeguarding the environment, reducing its carbon footprint and growing as a sustainable company.
This innovative sustainability-linked pricing mechanism allows AVANGRID to adapt liquidity to its $14.4 billion investment plan
for the 2017-2022 period, while fulfilling its commitment to a competitive and clean energy future and still delivering strong
financial results.
The $2.5 billion revolving credit facility closed today and will extend tenor for five years until 2023, and will have 21
lenders participating. Adjustments to the loan pricing will be based on AVANGRID’s continuing reduction in emissions intensity.
"Our values shape our approach to the environment and our responsibility to our stakeholders, where sustainability and financial
results are intrinsically linked," said James P. Torgerson, AVANGRID’s chief executive officer. “Development of clean energy and
respect for the environment are pillars of our energy production model and our operations. This new financial tool will allow us to
reduce our interest rate by meeting targets on environmental sustainability and renewable energy generation.”
In November 2017, AVANGRID issued its inaugural “green” bonds under AVANGRID’s newly adopted Framework for Green Financing, a
set of guidelines and commitments for AVANGRID’s green financing activities that are consistent with the Green Bond Principles
published by the International Capital Markets Association. The bond offering was nearly four times oversubscribed and attracted
many green-focused investors. The nearly $600 million raised has been used to support investment in three AVANGRID renewable
generation projects.
Sustainable finance is also part of AVANGRID’s commitment to the UN Sustainable Development Goals (SDG) for 2030, which AVANGRID
has incorporated into its strategy. Specifically, AVANGRID is focused on affordable and clean energy and climate action with clean
energy goals that include:
- A pledge to be carbon neutral by the year 2035;
- Focus on increasing our renewable installed generation capacity by more than 30% by the year 2020;
and
- A clear objective to reduce emissions intensity by 25% by 2020 vs 2015.
JP Morgan, Bank of America Merrill Lynch, MUFG, Santander and Banco Bilbao Vizcaya Argentaria (BBVA) acted as joint lead
arrangers for the facility. BBVA acted as “Sustainability Agent.”
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Forward Looking Statements: This press release contains a number of forward-looking statements. Forward-looking
statements may be identified by the use of forward-looking terms such as “may,” “will,” “should,” “can,” “expects,” “future,”
“would,” “could,” can,” “expect(s,)” “believe(s),” “anticipate(s),” “intend(s),” “plan(s),” “estimate(s),”
“project(s),”“assume(s),” “guide(s),” “target(s),” “forecast(s),” “are (is) confident that” and “seek(s)”“can,” “expects,”
“believes,” “anticipates,” “intends,” “plans,” “estimates,” “projects,” “assumes,” “guides,” “targets,” “forecasts,” “is confident
that” and “seeks” or the negative of such terms or other variations on such terms or comparable terminology. Such forward-looking
statements include, but are not limited to, statements about our plans, objectives and intentions, outlooks or expectations for
earnings, revenues, expenses or other future financial or business performance, strategies or expectations, or the impact of legal
or regulatory matters on business, results of operations or financial condition of the business and other statements that are not
historical facts. Such statements are based upon the reasonable current beliefs, expectations, and assumptions of our management
and are subject to significant risks and uncertainties that could cause actual outcomes and results to differ materially. Important
factors that could cause actual results to differ materially from those indicated by such forward-looking statements include,
without limitation: our future financial performance, anticipated liquidity and capital expenditures; actions or inactions of
local, state or federal regulatory agencies; success in retaining or recruiting, our officers, key employees or directors; changes
in levels or timing of capital expenditures; adverse developments in general market, business, economic, labor, regulatory and
political conditions; fluctuations in weather patterns; technological developments; the impact of any cyber-breaches, grid
disturbances, acts of war or terrorism or natural disasters; the impact of any change to applicable laws and regulations affecting
operations, including those relating to environmental and climate change, taxes, price controls, regulatory approvals and
permitting; and other presently unknown or unforeseen factors.
Additional risks and uncertainties are set forth under the “Risk Factors” in our Annual Report on Form 10-K for the year ended
December 31, 2017 and our Quarterly Report on Form 10-Q for the three months ended March 31, 2018, which are on file with the
Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any of the underlying
assumptions prove incorrect, actual results may vary in material respects from those expressed or implied by these forward-looking
statements. You should not place undue reliance on these forward-looking statements. We do not undertake any obligation to update
or revise any forward-looking statements to reflect events or circumstances after the date of this press release, whether as a
result of new information, future events or otherwise, except as may be required under applicable securities laws.
About AVANGRID: AVANGRID, Inc. (NYSE: AGR) is a leading, sustainable energy company with $31 billion in assets and
operations in 24 U.S. states. AVANGRID has two primary lines of business: Avangrid Networks and Avangrid Renewables. Avangrid
Networks owns eight electric and natural gas utilities, serving 3.2 million customers in New York and New England. Avangrid
Renewables owns and operates 7.1 gigawatts of electricity capacity, primarily through wind power, with a presence in 22 states
across the United States. AVANGRID employs approximately 6,500 people. AVANGRID supports the U.N.’s Sustainable Development Goals,
received a Climate Development Project climate score of “A-,” the top score received in the utilities sector, and has been
recognized for two consecutive years by Ethical Boardroom as the North American utility with the “best corporate governance
practices.” For more information, visit www.avangrid.com.
AVANGRID
Media:
Michael A. West, Jr., 203-499-3858
Michael.West@avangrid.com
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