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Riverstone Credit Opportunities Income PLC on Wednesday said it executed a new $150 million sustainability-linked loan to Clean Energy Fuels Corp.
The London-based energy infrastructure and energy-transition credit investor said it will provide Clean Energy Fuels with a four-year $150 million, sustainability-linked first lien term loan.
It said it committed $13.9 million at close on December 22, meaning with this latest investment, it remains nearly fully invested, with the revolving credit facility utilised and the portfolio predominantly comprising of green loans and sustainability-linked loans.
The loan has a maturity of December 22, 2026 with an all-in yield to maturity of around 12% for Riverstone Credit on a fully-drawn basis.
The financing reportedly provides Clean Energy Fuels with additional growth capital to execute its renewable natural gas growth strategy as demand rapidly grows, according to Riverstone Credit.
This growth strategy includes the development of negative carbon intensity RNG projects and construction of new RNG fuelling stations for the North American transportation sector.
Riverstone Credit said this is alongside funding Clean Energy Fuels’ expansion of RNG projects at dairies, which capture fugitive methane and turn it into a fuel made entirely from organic waste, reducing carbon emissions by an average of 300% compared to diesel.
It added demand growth for green fuel customers is reflected by Clean Energy Fuels’s customers such as Republic Services, WM, UPS, LA Metro and New York City MTA looking to expand their RNG fleets.
‘Clean Energy Fuels pioneered RNG as a vehicle fuel and continues to be the largest provider of RNG for the transportation industry throughout North America. We are thrilled to partner with them on their quest to deliver fully zero-carbon RNG by 2025,’ said Danny Flannery, Riverstone Credit managing director and investment manager.
‘Riverstone Credit is now nearly fully deployed in an attractive and diversified portfolio of independently accredited green and sustainability-linked loans that support the company’s target annual dividend yield of 8%, paid through quarterly distributions.’
Shares in Riverstone Credit opened flat at $0.93 each in London on Wednesday morning.
By Greg Rosenvinge, Alliance News reporter
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