LANXESS signs sustainable revolving credit facility of EUR 1 billion
With a volume of EUR 1 billion, it replaces the syndicated loan of EUR 1.25 billion expiring in May 2023
Cologne – LANXESS has linked its main revolving credit facility to the fulfillment of ESG (Environment, Social and Governance) criteria. The specialty chemicals company has now agreed a new syndicated credit facility with 12 banks, whose interest conditions depend, among other things, on the successful reduction of its greenhouse gas emissions and the increase in the proportion of women on the top three management levels.
With a volume of EUR 1 billion, it replaces the syndicated loan of EUR 1.25 billion expiring in May 2023. The sustainable revolving credit facility has an initial term of five years as well as two options for one-year extensions.
“We are convinced that sustainable criteria are also becoming increasingly important for the capital markets. We have therefore developed this innovative financing concept together with our banking partners. With the sustainable revolving credit facility, we are also underlining our commitment to achieving our ambitious climate targets,” said Michael Pontzen, Chief Financial Officer (CFO) LANXESS’.
In November, LANXESS had announced that it will go climate neutral and eliminate its greenhouse gas emissions of currently around 3.2 million metric tons of CO2 by 2040.
The revolving credit facility is intended to secure the company’s liquidity in the long term and thus to provide financial backup for growth. “We have used the good capital market environment and our solid investment grade rating to secure LANXESS’ long-term financing on attractive terms,” said Pontzen.