Summary
Dominion Energy, Inc. (D) announced on June 9, 2021, the establishment of two significant credit facilities totaling $6.9 billion. The primary facility is a $6 billion Fifth Amended and Restated Revolving Credit Agreement (Core Credit Facility) which amends and restates its predecessor. A key enhancement is the incorporation of sustainability-linked pricing, tying fee discounts to the company's achievement of renewable electric generation and diversity and inclusion objectives. This facility matures in June 2026 and is available for general corporate purposes, including supporting bank borrowings, commercial paper, and letters of credit. Additionally, Dominion Energy secured a $900 million Sustainability Revolving Credit Agreement (Supplemental Credit Facility) maturing in June 2024. This facility offers a reduced interest rate margin on amounts allocated to specific environmental sustainability or social justice initiatives, though it can also be used for general corporate purposes. These credit agreements demonstrate Dominion Energy's commitment to ESG principles while ensuring robust liquidity and financial flexibility for its operations and future investments.
Key Highlights
- 1Dominion Energy entered into two new credit facilities totaling $6.9 billion as of June 9, 2021.
- 2The Core Credit Facility is a $6 billion revolving credit agreement, amended and restated, maturing in June 2026.
- 3The Core Credit Facility incorporates sustainability-linked pricing, offering fee discounts tied to renewable generation and diversity/inclusion goals.
- 4A new $900 million Supplemental Credit Facility is dedicated to supporting green and social investment initiatives, maturing in June 2024.
- 5Proceeds from both facilities can be used for general corporate purposes, bank borrowings, commercial paper, and letters of credit.
- 6The company anticipates no material impact on the annual cost or availability of funds from these new credit agreements.
- 7These facilities reflect an alignment with ESG objectives through the sustainability-linked features.