Phoenix Tower turns financing into a loan linked to sustainability

The company says the facilities will support PTI’s future growth by providing critical, energy-conscious tower infrastructure to new and existing markets around the world.

Tower companies like PTI are under increasing pressure to reduce carbon emissions from cell sites to help meet their customers’ sustainability goals.

The €1.2 billion credit facility was closed in September 2023, but has since been converted into an SLL with three key KPIs.

First, PTI must decrease Scope 1 and 2 greenhouse gas intensity per site and disclose its Scope 3 emissions.

PTI will also need to improve its GRESB score. GRESB is an independent organization that provides validated ESG performance data and peer benchmarks for investors. The scoring will follow the GRESB Infrastructure Asset Assessment methodology.

Finally, at any tower site where PTI provides lighting, the lights must be converted to LED bulbs or powered entirely by solar energy.

On-site solar generation has been an emerging trend for cell sites for some years, but due to the limited power they can consistently generate, they are better suited for auxiliary functions such as lighting, alarms and battery charging in certain conditions.

CEO Dagan Kasavana reiterated that PTI was committed to providing wireless communication technology to communities and countries that need greater connectivity, in the most efficient and environmentally friendly way possible.

“As long-term owners of wireless infrastructure, we have the opportunity to lead on this important issue and we know it is important to our customers, the communities in which we do business and the industry as a whole. That’s why we set high standards for ourselves and are committed to this SLL,” he stated.

Dutch financial services company ING acted as lead arranger, underwriter and sole joint sustainability coordinator for the deal.

“ING supports its clients to stay one step ahead in digital connectivity and we are proud to see PTI expand its leadership in sustainability as well,” said Ana Carolina Oliveira, Head of TMT/Healthcare for the Americas at ING.

“This agreement is a testament to PTI’s commitment to advancing its sustainability initiatives by tying its financing to a comprehensive set of material KPIs,” added Suleyman Kilci, vice president of sustainable finance at ING Americas.