Amsterdam-based STX Group, a global environmental commodity trader and climate solutions provider, announced on Thursday, April 13, that it has raised an innovative credit facility of up to €150M from environmental commodities.
The credit facility, which was oversubscribed, is expected to fuel the rapid expansion of the company’s business operations.
According to STX Group, the unique feature of this credit facility is that it is partially secured by a diverse portfolio of environmental commodities.
Also, this marks the first time the banking system has recognised the full value of a wide range of environmental commodities as security.
“With the energy transition in the heart of STX, we have been in the business of decarbonisation for a long time, and are therefore pleased to see a group of mainstream global banks finally recognising the underlying value of the wider range of environmental commodities,” says Bart Wesselink, STX’s Chief Financial & Risk Officer.
The facility, which consists of a committed portion of €75M and an uncommitted accordion feature of €75M, will significantly increase STX Group’s borrowing power.
“The participating banks’ willingness to collaborate and innovate environmentally marks a pivotal step for the rapidly growing industry in which we are a market maker, as it enables greater access to financing and promotes a level playing field for contributors to the energy transition,” Wesselink continues.
“The banking community is used to accepting biofuels and financial instruments, such as European Union (EU) Emission Allowances, as collateral but we believe this is the first time that environmental commodities, such as Guarantees of Origin, Renewable Gas Certificates, and various national compliance certificates were accepted as collateral,” he concludes.
STX Group: What you need to know
STX Group offers a range of innovative solutions to help businesses and organisations transition toward a sustainable future.
The Dutch firm has developed expertise in accurately pricing pollution and emissions, and by doing so, has helped cultivate trust in market-based solutions for decarbonisation.
Through its trading and Corporate Climate Solutions offerings, STX ensures that money flows to hundreds and thousands of projects that make the world a greener place. At the same time, the company provides corporations with certified proof points of their contributions to environmental progress.
In December 2021, STX acquired Vertis and its subsidiary Strive, which has resulted in a more diverse team of nearly 500 employees from over 50 countries.
The STX Group is headquartered in Amsterdam, the Netherlands, and has 10 offices worldwide, with an annual trading volume of over €4B.
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