ORANGE, Conn.--(BUSINESS WIRE)--AVANGRID, Inc. (NYSE: AGR), a leading sustainable energy company, today announcedthatthe Company has entered into its first syndicated sustainability-linked credit facility as the next step in its ongoing efforts to financially support projects geared to AVANGRID’s commitment to safeguarding the environment, reducing its carbon footprint and growing as a sustainable company.

This innovative sustainability-linked pricing mechanism allows AVANGRID to adapt liquidity to its $14.4 billion investment plan for the 2017-2022 period, while fulfilling its commitment to a competitive and clean energy future and still delivering strong financial results.

The $2.5 billion revolving credit facility closed today and will extend tenor for five years until 2023, and will have 21 lenders participating. Adjustments to the loan pricing will be based on AVANGRID’s continuing reduction in emissions intensity.

"Our values shape our approach to the environment and our responsibility to our stakeholders, where sustainability and financial results are intrinsically linked," said James P. Torgerson, AVANGRID’s chief executive officer. “Development of clean energy and respect for the environment are pillars of our energy production model and our operations. This new financial tool will allow us to reduce our interest rate by meeting targets on environmental sustainability and renewable energy generation.”

In November 2017, AVANGRID issued its inaugural “green” bonds under AVANGRID’s newly adopted Framework for Green Financing, a set of guidelines and commitments for AVANGRID’s green financing activities that are consistent with the Green Bond Principles published by the International Capital Markets Association. The bond offering was nearly four times oversubscribed and attracted many green-focused investors. The nearly $600 million raised has been used to support investment in three AVANGRID renewable generation projects.

Sustainable finance is also part of AVANGRID’s commitment to the UN Sustainable Development Goals (SDG) for 2030, which AVANGRID has incorporated into its strategy. Specifically, AVANGRID is focused on affordable and clean energy and climate action with clean energy goals that include:

• A pledge to be carbon neutral by the year 2035;
• Focus on increasing our renewable installed generation capacity by more than 30% by the year 2020; and
• A clear objective to reduce emissions intensity by 25% by 2020 vs 2015.

JP Morgan, Bank of America Merrill Lynch, MUFG, Santander and Banco Bilbao Vizcaya Argentaria (BBVA) acted as joint lead arrangers for the facility. BBVA acted as “Sustainability Agent.”

About AVANGRID: AVANGRID, Inc. (NYSE: AGR) is a leading, sustainable energy company with $31 billion in assets and operations in 24 U.S. states. AVANGRID has two primary lines of business: Avangrid Networks and Avangrid Renewables. Avangrid Networks owns eight electric and natural gas utilities, serving 3.2 million customers in New York and New England. Avangrid Renewables owns and operates 7.1 gigawatts of electricity capacity, primarily through wind power, with a presence in 22 states across the United States. AVANGRID employs approximately 6,500 people. AVANGRID supports the U.N.’s Sustainable Development Goals, received a Climate Development Project climate score of “A-,” the top score received in the utilities sector, and has been recognized for two consecutive years by Ethical Boardroom as the North American utility with the “best corporate governance practices.” For more information, visit www.avangrid.com.