Institutional banking provider RBS International will contribute £34 million (US$46.4 million) to a £170 million syndicated facility to support JLEN Environmental Assets in its latest renewable energy investments.
JLEN is a Guernsey incorporated listed investment trust, managing a widely diverse portfolio of environmental infrastructure projects and assets in the UK and Europe, including wind, solar, hydro, anaerobic digestion, waste and wastewater, and other low-carbon and energy-efficiency projects.
The fund was first listed on the London stock exchange in 2014 and has worked since to expand its portfolio. It has a net asset value of £571.44 million across 39 assets with over 350 megawatts of power capacity across various markets.
The facility, which will support the investment trust’s expansion, has been converted into sustainability-linked loan with key performance indicators (KPIs) to meet environmental, social and governance metrics, which if met will see the borrower benefit from a 5-basis-points (bp) reduction to the margin. Likewise, if the sustainability KPIs are not fully achieved a 5bp increase will be applied to the base margin and reviewed and externally verified on an annual basis.
Angela Marchant, senior director, institutional banking, RBS International, says: “This facility closely aligns with RBS International’s purpose and internal sustainability goals, contributing to the wider NatWest Group’s climate targets in combatting the effects of climate change, and creating new opportunities for investors to engage with the green energy market.”