Drax Group PLC (LON:DRX) has extended a £125mln senior debt facility agreement by three years.
The Environmental, Social and Governance (ESG) facility, now valid until 2025, includes a mechanism that adjusts the rate of interest paid based on Drax's carbon emissions against an annual benchmark.
READ: Drax shares lifted as dividend fires remain burning
The energy supplier has committed to become carbon negative by 2030.
The average all-in interest rate during the first year of the extended facility is less than 2%, while the FTSE 250-listed group's overall cost of debt is less than 4% per annum.
Shares dipped 1% to 210.6p on Friday at the opening bell.
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