TIP Group recently raised additional funding to further grow and strengthen the business and implement its strategic planning.
The existing borrowing base financing arrangements (consisting of revolving and term debt) (BBF) were increased from €1,197 million to €1,391 million. The pricing, tenor and structure remained unchanged. The BBF matures in December 2025 but benefits from a 2 year extension option.
TIP also raised an additional €75 million in liquidity by creating a new ‘green’ revolving borrowing base facility. This sub-facility is specifically sustainability linked, a reflection of TIP Group’s intentions to meeting its sustainability ambitions and providing its customers with high quality low emission assets. The proceeds of this ‘green’ sub-facility may only be used to finance ‘green assets’ in line with the Green Loan Principles published by the Loan Market Association.
“The increase of our existing BBF and a new sustainability linked ‘green’ sub-facility provides flexibility to grow further, both organically and non-organically and broaden our geographical presence,” said TIP Group President and CEO, Bob Fast.
“The additional funds from existing and new financing partners reflect the trust in our business underpinned by our growth in the past seven years and provides a strong platform to continue along that path.”
TIP Group CFO, Hans van Lierop, said: “We originally structured and funded our RCF for EUR 300 million with three banks in 2014, and increased those financing arrangements to EUR 1,197m of borrowing based linked revolving and term debt by 2021 with 11 banks and non-banks in the syndicate. Further increase in the liquidity by EUR 269 million, including commitments from two new banks, this year adds to the robustness of our balance sheet. There was a strong interest in the loan market driven by our business growth and performance over the last seven years which had proven resilient in challenging market environments. We are closing 2022 with a strong balance sheet and liquidity position to support our long-term vision.”