Neptune Energy Announces Successful Refinancing
Innovative financing structure unites banks, insurance companies, and commodity traders under one framework
- Conclusion of a new three-year revolving guarantee facility
- Focus on decommissioning obligations and sustainable financing
- Transition to investment-grade documentation
Hanover. The commodity producer Neptune Energy has successfully refinanced its existing Reserved Based Lending Facility with a new revolving guarantee facility with an initial term of three years. The agreement includes two extension options and the possibility of further increasing the agreed volume in the hundreds of millions euro range.
The guarantees provided from the credit line serve primarily to provide security for the company’s mining decommissioning and recultivation obligations. Various commodity traders are providing additional credit lines for price hedging transactions under a single contractual framework.
Banks, insurance companies, and international commodity traders have been brought together under a common contractual framework. This innovative structure strengthens the financing and hedging strategy, reduces borrowing costs, and increases the flexibility of the Hanover-based company. The transition to investment-grade documentation was implemented as part of the transaction.
Neptune CFO Frederic Sager explains: „The successful completion of such a complex transaction confirms our current strategic path. In particular, all measures for the responsible decommissioning of our fields have been positively evaluated by our partners, and the potential of our transformation is attracting growing interest. Since the beginning of our spin-off from a global corporation in January 2024, we have been able to demonstrate that we are also successful as an independent company and are consistently expanding our activities.„
With the new Revolving Guarantee Facility, Neptune Energy is not only securing its financing but is also sending a clear signal for responsible action and innovative financing approaches in the energy sector. Through its production of natural gas and crude oil in Germany, the company contributes to security of supply and explores one of the largest projects for lithium extraction from brine worldwide.
„The transaction was characterized by a high degree of cooperation and mutual trust between the parties. Without this foundation, a conclusion of such framework would not have been possible. I would like to thank everyone involved, our financing partners‘ and entire Neptune Energy team,“ adds Neptune Group Treasurer Daniel Tolle.
The transaction was jointly led by Commerzbank AG, UniCredit Bank GmbH, and Swiss Re International SE, Niederlassung Deutschland. In the framework of this transaction, Swiss Re acts in the capacity of the issuing party. A total of ten international partners were involved. Neptune Energy received legal advice from a team from CMS Hasche Sigle, while the financing partners were represented by a team from McDermott Will & Schulte.
Maximilian Stigler, Advisory & Financing Solutions UniCredit, concludes: „We at UniCredit are proud to be part of this innovative structure and together with strong partners to contribute to the transformation of the energy sector. Bringing together banks, insurance companies, and commodity traders under a unified contractual framework is a remarkable step. This structure for financing decommissioning obligations demonstrates how innovative solutions can be successfully implemented even in complex industries.„
Further information on Neptune Energy can be found at www.neptuneenergy.de/en/