Danish energy company Ørsted has secured a €2bn ($2.3bn) five-year sustainability-linked syndicated revolving credit facility to be used for its general corporate purposes.

The credit facility has two one-year extension options and will replace Ørsted’s existing undrawn €1.4bn syndicated revolving credit facility, which it entered in December 2015.

Ørsted CFO Marianne Wiinholt said: “At Ørsted, we’re very committed to contributing to driving the green transition.

“We’ve been issuing senior bonds and hybrid capital in green format since 2017, and we now embrace the opportunity to take the natural step together with our banks to incorporate our green ambitions as sustainability-linked performance targets into our banking facilities.”

For the credit facility, European financial services company Nordea served as the sole coordinating mandated lead arranger, bookrunner, documentation agent and sustainability coordinator.

Nordea was also supported by a group of banks that had agreed to serve as the mandated lead arrangers and bookrunners.

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By GlobalData

These included Bank of America, Barclays Bank, BNP Paribas, Citibank, Jersey Branch, Rabobank, Crédit Agricole Corporate and Investment Bank, Danske Bank and Deutsche Bank.

Ørsted said that the credit facility’s interest margin will be adjusted to allow the company to meet its two pre-defined strategic sustainability targets on an annual basis.

The company initially aims to achieve its ‘science-based’ target of reducing the carbon emission levels in its energy generation and operations to 10g of carbon dioxide for every kWh by 2025.

This target is intended to help the company become carbon-neutral by 2025.

Ørsted’s second target is its taxonomy-aligned renewable investments, which are connected to its DKK350bn ($54.3bn) investment programme announced for 2020-2027.

Through these, the company aims to reach almost 50GW of installed renewable capacity by 2030.

Last month, Ørsted received a €500m loan from the European Investment Bank to support its increased capital expenditure programme for renewable energy projects and the Borssele I and II wind farms.