AMSTERDAM (September 24, 2024) — STX Group, a leading environmental markets and climate solutions firm, today announces the renewal and expansion of its borrowing base facility up-to EUR 375 million. The expansion comes as a result of the overwhelming interest among market participants, demonstrating the increased role of environmental products in commodities trading.
This significant increase from the previous facility of up-to EUR 150 million underlines STX Group’s growing role in the energy transition and underscores the deepening trust and endorsement of major international banks to environmental commodities markets. The initial credit facility, launched in April 2023, was the first time the banking system appreciated the full value of the wide range of environmental commodities as security.
The expanded facility has been secured through the collaborative efforts of a syndicate of seven major banks: Deutsche Bank, GarantiBBVA International, ING, KBC Bank, Natixis Corporate & Investment Banking, Rabobank and Société Générale. The lenders were advised by Clifford Chance, STX Group by A&O Shearman.
The facility will provide STX Group with increased access to funding for its operations, ultimately enhancing liquidity within the environmental commodities market. Funds will be key to finance a wide environmental products portfolio including renewable energy certificates, energy efficiency, biomethane and biogas. Increased funding will enable STX Group’s corporate clients to swiftly access climate solutions driving forward energy transition initiatives.
STX Group is confident that this deal, combined with some recent milestones such as introduction of the Special Purpose Vehicle offering companies the necessary working capital funding for their environmental certificates and STX Group’s role as a lead financier of BioValue’s biomethane plant, will strengthen its role as an enabler of faster decarbonization efforts and a more resilient global economy.
“This expanded facility shows our leadership in the environmental commodities market, our determination to maximize our positive impact and the growing recognition of the value climate finance delivers,” said Bart Wesselink, Chief Financial and Risk Officer at STX Group. “We are close to finalizing sustainability goals and assess the possibility of linking them to this facility, aligning with our ESG ambitions,” continued Jan Huijbregts, STX Finance Director, responsible for the facility at STX. “We are looking forward to further expand this facility in the years to come and further beefing up the pool of banks.”
STX Group appreciates the close collaboration between the banking partners, legal advisors and the STX team to have established the next step of the facility, supporting the STX Group’s efforts to play an even bigger role in the energy transition.