Alkion refinances debt to invest in its terminals

European bulk liquid storage company Alkion has completed a sustainability-linked refinancing of its debt, raising a €100 million capex and acquisition fund to invest in its terminals.

The term loans and ancillary facilities total €370 million, and this refinances the previous financing package of €255 million from 2019. The improved pricing is linked to three specific sustainability targets which will be independently monitored. Alkion says that it is committed to sustainability as a driver of long-term value for all stakeholders.

Alkion currently has nine terminals in France, Italy, Spain, Portugal and the Netherlands. The company will use the €100 million capex fund for its 2022-2025 terminal growth programme to increase capacity and improve operations and automation. This growth programme is driven by customer demand for petrochemical and biofuel storage.

Credit Agricole CIB, BNPP, Allied Irish Bank, Banca Intesa and Siemens provided the bank facilities, while Alkion also obtained an institutional loan privately placed with funds managed by UBS Asset Management.

‘At Alkion we view sustainability as the base of economic resilience and an opportunity for growth. We take particular pride in the framework we have adopted which sets measurable sustainability targets and links our financial performance to achieving those targets. Linking our cost of debt to these targets is our way of ‘walking the walk’. We are very pleased with the renewed confidence of 100% of our existing lenders while welcoming an additional bank in our financing pool. This financing will help us implement our 2022- 2025 investment plan which increases capacity in our terminals on petrochemicals, base oils and biofuels,’ says Rutger van Thiel, CEO of Alkion Terminals.

Source: Tank Storage Magazine