STX secures innovative credit facility of up-to EUR 150 million backed by environmental commodities
AMSTERDAM (April 13, 2023) – STX Group (STX), a leading global environmental commodity trader and climate solutions provider, has closed an up-to EUR 150 million syndicated borrowing base credit facility to foster the rapid expansion of its business operations. The credit facility, which was comfortably oversubscribed, has the unique quality of being partially secured by a diverse portfolio of environmental commodities. This is the first time the banking system has appreciated the full value of the wide range of environmental commodities as security, which essentially is a necessity for leveling the playing field for the energy transition.
“With the energy transition in the heart of STX, we have been in the business of decarbonization for a long time and are therefore pleased to see a group of mainstream global banks finally recognizing the underlying value of the wider range of environmental commodities,” says Bart Wesselink, STX’s Chief Financial & Risk Officer.
“The participating banks’ willingness to collaborate and innovate environmentally marks a pivotal step for the rapidly growing industry in which we are a market maker, as it enables greater access to financing and promotes a level playing field for contributors to the energy transition.” “The banking community is used to accepting biofuels and financial instruments, such as European Union (EU) Emission Allowances, as collateral but we believe this is the first time that environmental commodities, such as Guarantees of Origin, Renewable Gas Certificates and various national compliance certificates were accepted as collateral,” he concludes.
The facility, which will significantly grow STX’s borrowing power, consists of a committed portion of EUR 75 million and an uncommitted accordion feature of EUR 75 million. The facility is provided by a syndicate of internationally renowned banks, dominant in commodities trade financing.