VARO Energy, a Swiss-based energy company, has successfully secured $3.33 billion in financing through an oversubscribed debt round. The financing consists of a $1.13 billion loan and a $2.2 billion Borrowing Base Facility, with an additional $831 million available for investment in the company’s ONE VARO Transformation strategy.
The loan size was increased by 13 percent due to high demand, and the banking syndicate was expanded to include fifteen lenders and five sureties. Four new lenders joined the round alongside VARO’s existing lending banks. Notably, VARO raised a $165 million green loan, meeting stringent environmental, social, and governance criteria for the partial refinancing of the Bio Energy Coevorden acquisition.
The refinancing of the Borrowing Base Facility and Ancillary Guarantee Facility also saw strong demand from banks and sureties. Both the Revolving Credit Facility and Term Loan facility are unsecured, providing increased financial flexibility for VARO.
The funds raised through this financing will be invested in VARO’s ONE VARO Transformation strategy, with a focus on sustainable energies such as biofuels, biogas, e-mobility, nature-based carbon removals, and hydrogen. The company aims to position itself as a leading partner in the energy transition, supporting customers in their decarbonisation efforts.
VARO Energy has made significant investments in biogas and renewable energy services over the past year, acquiring Northern Europe’s largest biogas facility and increasing its stake in E-Flux, a provider of software for vehicle charging. The company has also signed an agreement with Lufthansa to supply Sustainable Aviation Fuel.
Dev Sanyal, CEO of VARO Energy, expressed his satisfaction with the successful financing round, stating that it strengthens VARO’s financial position and demonstrates confidence in the company’s strategy to reach net zero emissions by 2040.
The financing round was led by several institutions, including SMBC Group, Mizuho Bank, ING Bank, KfW IPEX-Bank, Rabobank, Société Générale, HSBC, Santander, Deutsche Bank, Credit Suisse, and Natixis, among others. Euler Hermes, Atradius Crédito y Caucion, Chubb European Group, Tokio Marine Europe, and Zurich Insurance also participated in the round as lead arrangers.
Overall, the successful financing round positions VARO Energy for further growth and investment in sustainable energy solutions, supporting the company’s commitment to the energy transition and decarbonisation.
For more information visit www.varoenergy.com/en/home/
