LANXESS has now agreed a new syndicated credit facility with 12 banks on the successful reduction of its greenhouse gas emissions (Scope 1) and the increase in the proportion of women on the top three management levels. With a volume of Euro one billion, it replaces the syndicated loan of Euro 1.25 billion expiring in May 2023. The initial tenure will be for five years, with 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, LANXESS’ Chief Financial Officer.
In November, LANXESS 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 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.
The transaction was coordinated by Deutsche Bank and UniCredit.