Whitbread has refinanced its debt, with the pricing of two green bonds, extension of its revolving credit facility and its intention to repay private placement notes.

The hotel and restaurant operator said the refinancing maintains the group’s strong balance sheet and financial flexibility, while extending the maturity of its debt.

The impact on the group’s combined gross debt and available facilities as a result of the £550m new Green bonds, is largely offset by a step down in the credit facility of £225m in September 2022, and the proposed repayment of approximately £284m of private placement notes.

Whitbread has priced the issue of £300m 2.375% green bonds due May 2027 and £250m 3.0% green bonds due May 2031.

An amount equal to the proceeds of the bonds will be used to finance or refinance eligible green projects.

The bonds are senior unsecured, contain no financial covenants and are expected to be rated BBB- by Fitch, in line with the Group’s current credit rating.

Nicholas Cadbury, group finance director, said: “We thank our new bond investors and our relationship banks for their strong support for the group.

“We are particularly pleased that we have been able to reinforce Whitbread’s long-term commitment to sustainability by establishing this green bond framework and issuing these green bonds. Whitbread is committed to being a force for good for all our stakeholders, including our people, customers, suppliers, in the communities in which we operate, and for the wider world around us.

“The refinancing announced today demonstrates the strength of our underlying business, and is another key step in ensuring that we emerge from the crisis as a leaner, stronger and more resilient business.”