Pioneering green loan to accelerate UK-wide EV charging network
In what is being called the UK’s first green loan for electric vehicle (EV) charging infrastructure, British energy company GRIDSERVE has announced over half a billion pounds in green financing for the expansion of its UK-wide EV charging network.
The company is calling the financing the largest debt raise to-date globally for a privately-owned chargepoint operator.
Comprising £326 million ($416.8 million) in committed loan facilities, with a further £200 million ($255.7 million) uncommitted accordion facility for future assets – a total of £526 million ($672.5 million) – the green infrastructure financing facility covers the company’s Sun-to-Wheel ecosystem.
The financing will be undertaken under GRIDSERVE’s Green Finance Framework which has been certified Dark Green by S&P Global’s Shades of Green (formerly CICERO), making it the first officially designated green loan for EV charging infrastructure in the UK, states GRIDSERVE in a press release announcing the financing.
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Financing breakdown
The refinancing will extend to the UK company’s existing and future EV charging Super Hubs and Electric Forecourts, as well as related infrastructure including operational solar and battery projects, in the hopes of allowing GRIDSERVE to upgrade and expand its UK network.
Projected to include the installation of more than 500 new Electric Super Hubs nationwide, the growth will deliver more than 3,000 new High Power chargepoints with speeds of up to 350kW, capable of providing 100 miles of charge in five minutes.
The £326 million facility consists of a £300 million ($383.6 million) term loan, a £10 million ($12.8 million) working capital facility and a £16 million ($20.5 million) VAT facility.
Toddington Harper, founder and CEO of GRIDSERVE, said: “To secure the largest debt raise globally for a privately-owned charge point operator is a remarkable endorsement of GRIDSERVE’s electric vehicle charging network, our Sun-to-Wheel strategy, our fantastic team and our future expansion plans.
“This financing – which was a hugely popular transaction amongst banks, attracting overwhelming market demand – will accelerate our delivery, providing customers further confidence to go electric, and fully charge GRIDSERVE’s mission to move the needle on climate change, precisely at the time when urgent action is so critically required.”
The bank club behind the debt raise consists of: CIBC, KfW Ipex, Lloyds Bank, MUFG, Natixis, NatWest, Santander and UK Infrastructure Bank, with Santander also acting as the Green Structuring Bank and GRIDSERVE being advised by Santander Corporate & Investment Banking.
Other advisers and due diligence providers included Clifford Chance (legal), Arup (commercial), PwC (tax and financial), Aon (insurance) and Mazars (model audit), while lenders were advised by Latham & Watkins (legal). Lloyds is the Facility Agent and Security Bank, with Natixis as Hedging Coordinator.
