ESG Post

Companies Sustainable Finance

Verkor secures $1.4 billion green loan from 19 banking entities

Verkor, a French low-carbon battery manufacturer, has secured a green loan of over 1.3 billion euros (approx. $1.4 billion) from 3 public and 16 commercial banks. The funds have been secured for construction and financing of the company’s first Gigafactory in Dunkirk having an initial production capacity of 16 GWh/year. This new transaction has taken the total amount of financing for the Gigafactory and Verkor Innovation Centre to over 3 billion euros ($3.3 billion).

The Gigafactory will be operational in 2025 and will create around 1,200 direct jobs and 3,000 indirect jobs over the next 2 years. Verkor claims it will produce low-carbon batteries with one of the smallest environmental footprints in the world.

Verkor has received the “Dark Green” rating from the independent rating agency Standard & Poor’s, the highest possible for a green loan. This rating guarantees that the project financed complies with numerous environmental criteria that are regularly audited and measured, to guarantee its ecological commitment.

“We are proud to secure 1.3 billion euros to further develop our ambitions. This debt financing will enable us to finalize the construction of our Gigafactory, which will produce its first low-carbon battery cells in 2025. The participation of 19 leading banks in demonstrates the credibility of our project, and enables us to accelerate our drive to become one of Europe’s leading battery manufacturers. We are also delighted that this financing takes the form of an unprecedented ‘green loan’,” said Verkor CEO Benoit Lemaignan.