- First ever green transition loan backed by UK Export Finance
(UKEF) helps Wood continue
to transition to capitalise on opportunities linked to clean
energy, hydrogen and decarbonisation
- Loan gives Wood the financial resource to take advantage of
green trade opportunities
- Government aligns free trade agenda behind green exports
ahead of COP26
LONDON – August 19th, 2021 – The first ever government-backed
green transition loan has been awarded to engineering and
consultancy firm Wood to seize new clean growth export
opportunities, International Trade Secretary has
announced today.
With less than three months before the UN climate change
conference, COP26 in Glasgow, the UK continues to align its free
trade agenda behind green exports to speed up the country’s
transition away from fossil fuels to low-carbon energy sources,
which is expected to deliver up to £170 billion of
export sales in goods and services for the UK by 2030.
Firms operating in the UK’s industrial heartlands, like
Aberdeen-headquartered Wood, will be backed by Government to
drive forward this transition, whilst supporting thousands of
green jobs.
This £430 million commercial loan will be supported by an 80%
UKEFTransition Export
Development Guarantee (Transition EDG) and will give Wood
the financial resources to enhance its clean growth plans by:
- accelerating the speed at which Wood can organically grow its
business by investing in future low carbon growth areas linked to
the energy transition in the UK and abroad
- providing critical working capital for deployment in clean
growth projects around the world
- providing additional funds for Wood’s research and
development in clean growth sectors
Under the agreement, Wood will commit to increasing its clean
growth portfolio and significantly reducing its greenhouse gas
emissions over the five-year tenure of the facility.
Wood employs nearly 7,000 people across the UK and generates
nearly £400 million annually from its exports. The company
expects its export revenue, related to low-carbon projects, to
significantly increase as the energy transition gathers pace and
the loan will help them capitalise on these opportunities,
supporting green jobs at the firm.
International Trade Secretary, , said:
Green trade presents a major economic opportunity for Britain
that will drive high-value jobs in every part of the nation.
Wood has already made great strides in repositioning its
business for a low-carbon future. I am delighted it is the
first company to energise its clean growth plans using
UKEF’s new Transition
Export Development Guarantee, which will support thousands of
green jobs.
UK Government Minister for Scotland said:
It’s fantastic to see the UK government’s first Transition
EDG going to
a Scottish-based company, helping support low carbon jobs right
across the whole UK.
As we prepare to host COP26 in Glasgow later this year, this
announcement marks another important milestone in the UK’s
energy transition, showing how free trade will help deliver on
our net zero targets.
Robin Watson, Chief Executive at Wood said:
We recognise the unstoppable momentum behind the energy
transition and are committed to providing the practical
solutions to help deliver a net-zero future. We are already
well advanced with our own transition, deliberately broadening
our portfolio across energy and supporting our clients to
achieve their own carbon reduction goals.
UKEF’s support will
allow us to accelerate this journey and capitalise on the many
opportunities emerging as we build the low-carbon energy
systems of the future.
UKEF’s Transition
EDG was
launched ahead of COP26 to enable UK exporting companies to
access the financial resources they need to transition away from
fossil fuels to clean energy alternatives.
The facility was co-ordinated jointly by Citi and BNP Paribas
with Citi acting as Facility Agent while Rothschild & Co
acted as advisers to Wood. The mandated lead arrangers were ABN
Amro Bank, BNP Paribas, Citi, HSBC UK Bank, Lloyds Bank and The
Royal Bank of Scotland.
Slaughter & May acted as legal counsel to Wood with Allen
& Overy engaged jointly by UKEF and the banks. CRISIL, an S&P
Global Company, acted as an independent consultant and was
engaged to assess the credibility of Wood’s clean growth plan and
carbon reduction targets.
Background
About UK Export Finance
UK Export Finance is
the UK’s export credit agency and a government department,
working along-side the Department for International Trade as an
integral part of its strategy and operations.
Established in 1919, it exists to ensure that no viable UK export
should fail for a lack of finance from the private market. It
provides finance and insurance to help exporters win, fulfil and
get paid for export contracts.
About Wood
Wood is a global leader in consulting and engineering across
energy and the built environment, helping to unlock solutions to
some of the world’s most critical challenges. We provide
consulting, projects and operations solutions in more than 60
countries, employing around 40,000 people. www.woodplc.com
