The GIB loan matches funding from the Prudential and M&G UK Companies Financing Fund agreed in July2012. The power generation company is also replacing a £310 million revolving credit facility with a £400 million facility maturing in April 2016, it said.
Drax plans to convert three of its 660 megawatt coal power generators and supporting infrastructure to run on biomass.
Shaun Kingsbury, CEO of the GIB, said: “We are delighted to support Drax in the delivery of its biomass strategy. Sustainably sourced biomass is a key form of renewable energy supported by UK government policy and will play an essential role in the UK’s transition to a low carbon economy. This financing not only supports Drax in reducing future greenhouse gas emissions but also accelerates the UK’s transition to a green economy.”