Swiss energy producer and trader Axpo Holding AG has clinched a sustainability-linked €7bn revolving credit facility (RCF) from a syndicate of more than 30 banks, led by ING Switzerland. 

Axpo, which is Switzerland’s largest producer of renewable energy, initially launched the facility at €6bn but expanded it “due to strong demand and significant oversubscription”, the company says. 

The unsecured committed RCF has a three-year term, with extension and increase options, and refinances two earlier credit lines of €3bn each. 

The company declined to list all banks involved when contacted by GTR, but ING Switzerland announced this week it acted as documentation agent, facility agent, and is one of 12 bookrunners and mandated lead arrangers. 

The bank says the facility “is tailored to Axpo’s financing and business needs with a revolving [letter of credit] tranche and a RCF tranche enabling the company to finance current business and growth initiatives”. 

ING Switzerland was also joint sustainability coordinator for the transaction, along with Crédit Agricole CIB and SMBC. 

The interest rate applied to the facility depends on Axpo meeting targets for the expansion of renewable energies, the proportion of women in management positions and the number of apprentices employed, the company says. 

Gregory Lambillon, chief executive and country manager of ING Switzerland, says the transaction shows the bank’s “commitment to the energy transition in the Swiss and Emea market”. 

“Supporting the net zero pathway by financing renewable energy sources in the markets is a strategic priority for our organisation,” he says. The bank has recently drawn praise from campaign groups for its support of decarbonisation. 

Axpo Group chief financial officer Harald Gauck adds that the facility “expands our financial flexibility, while the sustainability targets once again demonstrate our commitment to a sustainable future”.