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Gasum lands long-term financing with green loan extension

Gasum lands long-term financing with green loan extension
Gasum is a Nordic gas sector and energy market services provider.

Finland-headed energy company Gasum Oy has announced that it has signed a long-term financing agreement totalling EUR 565 million with its current lenders. Nordea acted as coordinator, OP Corporate Bank as sustainability coordinator, and SEB as co-coordinator and agent of the arrangement. The financing includes a term loan and revolving credit facilities.

According to a statement, Gasum’s green loan has been extended from EUR 152 million to EUR 175 million.

The green loan is used to finance Gasum’s strategic investments into increasing biogas production both by expanding biogas production at existing plants as well as construction of new large-scale plants.

The green loans are administered under Gasum’s Green Finance Framework, where biogas-related assets have a top rating of Dark Green from independent ratings issuer Shades of Green.

The green loan will be exclusively used for assets related to biogas production and distribution.

Sustainability embedded into strategy

The margin of the sustainability-linked revolving loan facility is tied to Gasum’s own sustainability goals related to renewable gas volumes, sustainable biogas production, and safety.

These newly negotiated financing facilities demonstrate Gasum’s commitment to sustainability. The green energy transition is embedded into our business strategy, and this long-term financing is vital to our ability to make the necessary investments that enable us to deliver more and more renewable energy to our customers, said Kai Laitinen, Gasum’s Chief Financial Officer.

Gasum’s strategic goal is to bring seven terawatt hours (7 TWh) of renewable natural gas (RNG) yearly to the Nordic market by 2027.

This is four times more than today and would mean a combined annual carbon dioxide (CO2) reduction of 1.8 million tonnes for Gasum’s customers.

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