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FirstGroup signs sustainability-linked Revolving Credit Facility with banks [free access]

September 1, 2021

FirstGroup has announced that it has signed a new GBP300 million sustainability-linked Revolving Credit Facility (‘RCF’) with a group of its relationship banks. The RCF has an initial maturity period of four years and has the option of extending the period by another year subject to bank consent. The covenants have been structured to reflect the future shape of the Group and to give substantial headroom against them. The new RCF replaces all the Group’s former committed syndicated and bilateral banking facilities that have been recently repaid and cancelled.

 

The initial interest rate will be the Bank of England’s Sterling Overnight Index Average (SONIA) interest rate plus 1 per cent, and it will thereafter vary according to two measures. The first measure is related to the Group’s leverage and the second is related to the Group’s performance against two sustainability key performance indicators (KPIs). The two KPIs are the level of Scope 1, 2, and 3 emissions per GBP million of revenue earned from the Group’s First Bus and First Rail operations, and the relative growth of the Group’s zero-emission bus fleet in the UK.

 

(1 GBP [British Pound] = 1.38 USD)