Background
- VTTI, headquartered in the Netherlands, is a global leader in independent energy storage that develops critical energy infrastructure essential to the move towards a carbon neutral future
- VTTI operates 16 high-quality and strategically located assets across Europe, Middle East, Africa, Asia, North America and Latin America with a total storage capacity of 9.2m cbm
- VTTI is increasingly focused on offering innovative, efficient, and sustainable solutions by transitioning to sustainable sources of energy and developing a portfolio of decarbonization infrastructure
Process
- DC Advisory was appointed as joint financial advisor to VTTI for the refinancing of their existing two-tier capital structure into a single tier senior common terms platform financing at VTTI Finance B.V.
- DC Advisory supported VTTI throughout the process and successfully delivered several detailed work streams, including overall process management, financial modelling, credit rating, debt structuring and documentation negotiations
- DC Advisory positioned VTTI’s credit alongside market peers, securing an investment-grade rating for the new financing
- DC Advisory ran a highly competitive financing process, evaluating various structures and liquidity sources from Asian/ European and US banks and institutional investors
Outcome
- In September 2024, VTTI raised a total of c.$1.7bn equivalent, optimizing its capital structure to establish a single-tier financing platform tailored to its business model
- The new financing includes a common terms investment-grade platform with longer and diversified tenors, reducing refinancing risk and providing VTTI with a more flexible structure to support its growth
- The financing also includes a committed revolving credit facility alongside ESG-linked tranches, to further support VTTI’s decarbonization and energy transition strategy
- The financing further diversifies VTTI’s access to liquidity from banks and both European and US private placement lenders
- This transaction highlights DC Advisory’s expertise in the energy Infrastructure sector, and further strengthens the firm’s experience in advising on complex refinancings
