Wood today announces it has agreed a $600m (£430m) loan with UK Export Finance, the export credit agency of the UK government, that will enable the company to capitalise on opportunities emerging as the energy transition gathers further pace.
Wood is the first company to access the Transition Export Development Guarantee (TEDG), a new facility set up to support UK exporting companies with working capital to invest in low-carbon growth markets including renewables, hydrogen and decarbonisation.
The TEDG is a five-year term loan, effective from July 2021, from a group of six of Wood’s relationship banks (ABN Amro Bank plc, BNP Paribas, Citi, HSBC UK Bank plc, Lloyds Bank plc and The Royal Bank of Scotland plc) that is 80% guaranteed by UKEF. The facility is competitively priced and extends the maturity of Wood’s facilities to allow long term investment in the growth of its business.
The facility includes KPIs linked to growing export revenue related to energy transition and sustainable infrastructure, reductions in scope 1 and 2 carbon emissions and financial covenants in line with Wood’s existing facilities.
David Kemp, Chief Financial Officer, Wood said: “The UK government’s decision to select Wood as a debut issuer for this new facility is a strong endorsement of our energy transition strategy. The loan will provide a source of working capital to invest in unlocking the many low-carbon growth opportunities we can see across our business.”
Separately, in July 2021, Wood repaid bilateral term loans of $300m with a maturity date of May 2022.