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Lanxess signs revolving credit facility of €1 bn

10
Dec '19

Pic: Lanxess

Lanxess, a leading specialty chemicals company, has linked its main revolving credit facility of €1 billion to fulfill ESG (Environment, Social & Governance) criteria. It has agreed to a new credit facility with 12 banks, on reduction of greenhouse gas (GHG) emissions and increase in the women representation at top three management levels.

With a volume of €1 billion, the new credit facility replaces the syndicated loan of €1.25 billion expiring in May 2023. The “sustainable” revolving credit facility has an initial term of five years and 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, 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 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.

The transaction was coordinated by Deutsche Bank and UniCredit.

Fibre2Fashion News Desk (RKS)

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