a field, including emissions from exploration, development and production.


As a testament to the company’s commitment, the refinancing transaction has ESG KPIs and a margin grid linked to renewable electricity generation and carbon intensity, making it one of the very first ESG-linked transactions in the oil and gas industry. In 2019, the group was rated highly by several ESG rating agencies, including some related to human rights. These include: • Vigeo Eiris – Top 10 ESG in Europe, top five on human rights globally;


• ISS ESG – Prime status; • MSCI – AA; • Sustainalytics – Outperformer; and • CDP – B.


Transaction structure The facility combines a five-year US$1.5bn revolving credit facility and US$3.5bn of term loans, split across two-, three-, four- and five-year maturities, replacing the


current US$4.75bn RBL and US$500m of other credit facilities. Interest reduces to 1.6% above the London Interbank Offered Rate (Libor), from the current RBL rate of 2.5% above Libor. It also includes the option to bring in additional commitments in an accordion option of up to US$1bn.


All facilities are secured through share pledges, asset security and security over collection accounts. Lundin’s medium- term plan is to issue unsecured bonds in the capital markets that will progressively replace the term loans upon issuance. Upon its first such issuance, all security will be released automatically, provided certain conditions related to credit rating and application of proceeds are met. Protective covenants will continue to apply.


“For the first time we are also including ESG KPIs in our debt framework, which will serve to offer an economic incentive to continue improving our carbon emissions


performance. This further demonstrates the financial value which can be realised from industry-leading sustainable operations,” said Lundin’s Chief Financial Officer, Teitur Poulsen, commenting at the announcement of the deal.


Harbour Energy


On 31 March 2021, Harbour Energy was born from a merger between Chrysaor, the UK’s leading North Sea independent oil and gas company and largest net producer, and Premier Oil plc, a UK-listed (FTSE)


23%


The proportion of oil in the global energy mix by 2040


(International Energy Agency)


Harbour Energy’s UK Jasmine Platform


36


Images: Lundin Energy, Harbour Energy


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