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    UK's Wood secures $1.2bn bank facility

Summary

The new facility is sustainable, linked to Wood's performance in building up its energy transition business and bringing down emissions.

by: Joseph Murphy

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Complimentary, Natural Gas & LNG News, Europe, Energy Transition, Corporate, Exploration & Production, Financials, News By Country, United Kingdom

UK's Wood secures $1.2bn bank facility

UK engineering group Wood announced on October 21 it had secured a $1.2bn five-year revolving credit facility from a group of 16 banks.

The facility will extend the maturity profile of Wood's debt facilities by replacing a previously obtained $1.75bn revolving credit facility that was due to decrease to $1.5bn in May 2022 and remain at that level until May 2023. The lending margins and financial covenants of the new facility are the same as the existing one.

Wood said the new facility was sustainable, including key performance indicators "linked to growing export revenue related to energy transition and sustainable infrastructure, and reductions in Scope 1 and 2 carbon emissions."

"This new facility reflects the continued strength of support from our relationship banks and their confidence in Wood and our strategy," Wood CFO David Kemp said. "The group now has a balanced portfolio that maintains Wood's strong liquidity and financial headroom in line with our conservative approach to debt financing arrangements".