Business Irish

Sunday 25 February 2018

ESB agrees new €1.44bn credit facility involving 14 banks

Colm Moriarty and Cathal Marley, ESB Group Treasury, with the Corporate Treasury of the Year Award from Risk Magazine.
Colm Moriarty and Cathal Marley, ESB Group Treasury, with the Corporate Treasury of the Year Award from Risk Magazine.
Colm Kelpie

Colm Kelpie

The ESB has signed a new €1.44bn credit facility with a syndicate of 14 banks.

The borrowing facility was provided by a range of lenders including Barclays, BBVA, BNP Paribas, Danske Bank, RBC, RBS/Ulster Bank, JP Morgan, HSBC, Societe Generale, AIB, Bank of Ireland, Bank of Tokyo Mitsubishi, Intesa SanPaola and Santander.

RBS - the parent of Ulster Bank - acted as the co-ordinator for the transaction. ESB finance director Donal Flynn said the transaction represents a vote of confidence in ESB by the international banking sector.

"It ensures that ESB has access to the banking liquidity it needs into the next decade and will support its ongoing investment in Ireland's energy infrastructure," Mr Flynn said.

Unlike a loan, which must be drawn down in full upfront, this facility allows ESB to tap into it at any stage needed over the five year term, which has an option to extend for another two years.

This amends and extends a similar credit facility agreed in 2013.

ESB Group Treasury was last week awarded Corporate Treasury of the Year by 'Risk Magazine'.

ESB said the award recognises the risk management and refinancing work completed by ESB during the year.

"ESB works with 14 International investment banks on a range of activities from funding in the financial markets to hedging risk in interest rates and foreign exchange," the commercial semi-state said.

"'Risk Magazine', in making the award, noted how successfully ESB manages its banking relationships, which was evident in bringing fourteen individual banks through such a complex transaction."

Previous winners include Microsoft (USA), BMA (Germany), Google (US), Tesco (UK) and Rolls Royce. The award ceremony took place in London last Saturday. The ESB was last month granted planning permission for a €150m redevelopment of its headquarters in Dublin.

Under conditions set by the council's planning authority, the ESB will have to provide a "detailed methodology" on how it will protect the architecture of adjoining buildings before it begins the redevelopment of its site on Fitzwilliam Street.

It will also have to pay €941,840 towards the proposed Metro North Scheme and contribute €654,706 for the development of public infrastructure and facilities in the area. The company announced details of the redevelopment in 2013.

Irish Independent

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