Dutch firm DSM says that it has successfully concluded a new EUR1 billion Revolving Credit Facility that links the interest rate of this facility to its Green House Gas (GHG) emission reduction. The deal was concluded with a syndicate of 15 banks and replaces two existing Revolving Credit Facilities of in total EUR1 billion, maturing in 2018 and 2020.
DSM says sustainability is a core value, a key responsibility and an important business growth driver. Climate action underpins its approach to sustainability and business at large. To underline its commitment to tackling climate change, DSM has linked the interest rate of this Facility to its performance on the reduction of GHG emissions, consisting of three performance improvement elements: cumulative GHG efficiency improvement, improving the Energy Efficiency Index (EEI) and increasing the electricity sourced from renewable resources.
Geraldine Matchett, CFO and Member of the DSM Managing Board commented: “DSM is deeply committed to providing products and solutions that help to combat climate change. Therefore, I am pleased that our long-term banking partners have supported us in getting this innovative financing arrangement in place, underscoring the importance of sustainability in everything we do and that includes corporate finance.”
The EUR1 billion Revolving Credit Facility underpins DSM’s strong liquidity profile, and is intended for general business purposes. The Facility has a maturity of five years which may be extended by a further two years.