To finance the ongoing expenditure of the borrowing base assets and other general corporate purposes. The RBL also funds a key DUC asset redevelopment (Tyra) thereby unlocking reserves upside while significantly reducing operational carbon emission.

Transaction background:

• The refinancing (amend, extend and increase) on the existing RBL facility was to optimise Noreco’s debt availability by fully utilising its existing borrowing base capacity, which is currently constrained by the US$900m facility limit. The transaction refinances the existing M&A-related US$900mn RBL, which was co-led by Deutsche Bank in 2019, and provides sustainable funds to finance future growth and carbon emission reduction investment projects. 
• The RBL has now been increased from US$900m to US$1.1bn (with a US$200m sub-limit for Letters of Credit).
• The use of proceeds will be used for (amongst others) the gross expenditure of the borrowing base asset and other general corporate purposes. The RBL aims to make full use of its borrowing base and increase the company’s financial headroom ahead of the completion of the Tyra gas field redevelopment.
• The facility and security structure remains intact and includes first ranking share security over borrower and subsidiaries holding the borrowing base assets, as well as offtake contracts and pledge over the proceeds accounts, among others. 

Transaction highlights:

• Through a combination of redevelopment, improvement, and electrification (from renewable source) projects, the DUC is committed to the delivery of the Danish government’s ambitious 2030 objective to reduce carbon emission by 70%. The RBL funds a key DUC asset redevelopment (Tyra) that will unlock reserves upside and significantly reduce operational carbon emission.
• In line with Noreco’s commitment to ESG, the facility will include KPIs based on emissions intensity and renewable electricity generation that will progressively adjust the margin payable through the life of the Facility (i.e. (i) pre-agreed carbon emissions reductions targets and (ii) percentage of power sourced from renewables). This P3 transaction contributes to our Sustainable Finance target of €200bn by 2023.
• This is an important milestone for Noreco, ensuring the company continues to have a strong capital structure and remains fully-funded to deliver the Tyra Redevelopment project.  
• The execution of this lead RBL mandate reaffirms Deutsche Bank’s commitment to North Sea E&P independents that are supporting energy transition.