Wood Group secures £430m loan to boost green initiatives

Wood Group secures £430m loan to boost green initiatives

Aberdeen-based engineering and project management firm Wood Group has secured a UK Government-backed loan worth £430 million to boost its green initiatives.

The funding is part of the new UK Export Finance (UKEF) guarantee which aims at helping exporters through the “energy transition” and hopes to create new green jobs across the UK.

Wood Group’s commercial loan is supported by an 80% UKEF Transition Export Development Guarantee (UKEF’s Transition EDG).

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.

Under the agreement, Wood is committed to increasing its clean growth portfolio and significantly reducing its greenhouse gas emissions over the five-year term of the loan.

Robin Watson, chief executive, 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.”

The loan is co-ordinated jointly by Citi and BNP Paribas, with Citi acting as facility agent, while Rothschild and Co acted as advisers to Wood. Crisil, a subsidiary of ratings company S&P Global, was engaged to assess the credibility of Wood’s clean growth plan and carbon reduction targets.

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