A new term loan for Drax allows it to meet the commitment signalled at the full year results to repay Q4 debt maturities. The company remains financially strong with FY 23 showing cash generation of £1,111m and a net debt to adjusted EBITDA ratio of 1.1x, down from 1.6x in FY 22. We think this leaves the company well able to fund its key investment opportunities.
