Celsia receives ESG-linked loan

Energy    Dec 14, 2021 6:11 PM

Celsia Colombia S.A., a subsidiary of Grupo Argos, acquired a loan linked to environmental metrics.

The company said that the Board of Directors authorized to sign the first credit agreement linked to environmental, social and corporate governance (ESG) metrics with Bancolombia, Valora Analitik reported.

The amount of the transaction is up to CoP$500B for a term of eight years.

The company agreed to monitor three metrics related to: reducing CO2 emissions intensity, planting native trees in the ReverdeC program, and promoting gender equity in the workplace.

Meeting the goals will generate a reduction in the interest rate.

The use of the resources will be to improve the conditions and maturity profile of the energy company and does not represent an increase in its level of indebtedness.

“This credit demonstrates and recognizes Celsia’s commitment to ESG and its sustainability strategy, contributing to the fulfillment of national and international climate change goals, and encourages gender equity,” Celsia said.

In addition, the Board of Directors authorized Celsia Colombia to guarantee the obligations to be acquired by the corporate vehicle Termoeléctrica El Tesorito S.A.S in connection with the short-term bridge loan agreement for US$87M that the company will enter into with international banks while it gets the resources for long-term financing.

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