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Puma Energy Closes Key Sustainability Credit Facilities

May 11, 2023
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Puma Energy Closes Key Sustainability Credit Facilities
  • Over USD 800 million of committed facilities— highest amount secured in 5 years
  • Over-subscription reflects confidence in Puma Energy’s growth strategy
  • First Revolving Credit Facility and Term Loan to include an ESG KPI

Based on an initial launch size of USD 700 million, the Facilities were oversubscribed and subsequently increased. The facilities benefit from commitments received from a diverse group of 24 existing and new lenders, with a broad geographical split (31 per cent Africa, 27 per cent Europe, 23 per cent Asia-Pacific, 13 per cent Middle East and 6 per cent America). For the first time, the Facilities will include a sustainability linked component with margins adjusted subject to Puma Energy achieving KPIs relating to greenhouse gas emissions reduction as well as security and human rights.

Carlos Pons, Chief Financial Officer at Puma Energy, said: “I am pleased to announce the successful completion of our 2023 Revolving Credit Facility and Term Loan. The support we have received from our existing and new lenders demonstrates confidence in our on-going efforts to turn around and strengthen our business by focusing on our core downstream markets and laying the groundwork to ensure the long-term sustainability of our business. Alongside our efforts to strengthen our balance sheet, these new facilities provide us with the flexibility to deliver profitable growth.

“In addition, the Sustainability-Linked Loan terms reflect our commitment to safety and human rights and to mitigating our environmental impact through the reduction of our greenhouse gas emissions reduction in line with our sustainability strategy”, added Pons.

The two sustainability KPIs will be tested annually and verified by a third-party expert, relating to cutting operational greenhouse gas emissions (Scope 1 & 2), and the implementation of the Voluntary Principles on Security and Human Rights at Puma Energy’s operations. The facility agent will apply a penalty or discount on the margin, depending on the number of KPIs met each year.

The New Facilities comprise a revolving credit facility (“Facility A”) split into Facility A1 (loans and credit instruments for USD 30 million), Facility A2 (swingline facility for USD 30 million) and Facilities A3 (1yr RCF for USD 455 million) and A4 (loans only, 2yr RCF for USD 147.5 million); and a term loan facility (“Facility B”, 2yr TL for USD 160 million). Facilities A1, A2 and A3 will have a 1-year tenor and Facilities A4 and B, which make up c.37 per cent of the total facility, will have a 2-year tenor. The Facilities are refinancing the USD 695 million dated 29 April 2022, as well as being used for general corporate and working capital purposes.

ABSA Bank Limited (acting through its Corporate and Investment Banking division) (“ABSA”), ING Bank N.V. (“ING”), MUFG Bank Ltd. (“MUFG”), Natixis, Société Générale and Standard Chartered Bank acted as Mandated Lead Arrangers and Active Bookrunners for the transaction, with SMBC Bank International plc (“SMBC”) acting as a Passive Bookrunner. ING and Société Générale acted as Coordinators for the syndication, and ABSA acted as both Documentation Agent and Facility Agent. MUFG, Société Générale and Standard Chartered Bank acted as ESG advisors

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