Electricity and natural gas provider Dominion Energy announced today the syndication of nearly $7 billion of credit facilities incorporating pricing linked to sustainability goals.

Sustainability linked loans and securities are an emerging form of sustainable finance instruments, with attributes including interest payments tied to an issuer’s achievement of specific sustainability targets. The instruments have been gaining significant popularity by issuers looking to enhance their ESG profiles and investors and financiers aiming to improve the impact of the capital they deploy.

Dominion’s sustainability-linked credit facilities include a $6.0 billion master credit facility extended to 2026, and a $0.9 billion supplemental credit facility expiring in 2024. Pricing on the master credit facility is linked to the achievement of annual renewable electric generation and diversity & inclusion milestones.  For the supplemental facility, the company is utilizing a first-of-its-kind structure with pricing benefits for draws related to qualified environmental and social spending programs.  

James R. Chapman, Dominion Energy Executive Vice President, Chief Financial Officer and Treasurer said:

“These green financings support our corporate sustainability objectives and complement our industry leadership around environmental, social, and governance strategies, while providing us with the flexibility to finance our $32 billion five-year growth capital plan— over 80% of which is for emissions reduction or enabling technologies.”