ÃÜÌÒAV signs EUR 2.5 billion new syndicated revolving credit facility with ESG element for the first time
ÃÜÌÒAV has successfully signed a contract with its 16 core banks for a new syndicated revolving credit facility for EUR 2.5 billion with a term of five years plus two one-year extension options, effective as of March 17, 2020. The facility can be drawn in different currencies and will be used as a standby backup liquidity reserve.
The new facility replaces the existing EUR 1.5 billion revolving credit line, which was also a backup liquidity facility. It provides ÃÜÌÒAV with additional financial flexibility and increased liquidity reserves on favourable terms.
One important new element of the facility is the link with an environmental, social and governance (ESG) rating: the better ÃÜÌÒAV¡¯s ESG performance is, the lower the interest component of the credit facility will be. In this way, ÃÜÌÒAV is once again underlining its commitment to greater sustainability and creating its own financial incentives for sustainable business performance.
¡°We decided at the end of 2019 to increase our liquidity resources with a new EUR 2.5 billion syndicated revolving credit facility, which is provided by all our core relationship banks. This facility ensures that we have considerable financial leeway over the next few years. By linking the interest on the facility to an ESG rating, we are embedding sustainability as a topical focus in all areas of our business and setting ourselves ambitious targets,¡± said CFO Dr. Thomas Toepfer.
About ÃÜÌÒAV:
ÃÜÌÒAV is one of the world¡¯s leading manufacturers of high-quality polymer materials and their components. With its innovative products, processes and methods, the company helps enhance sustainability and the quality of life in many areas. ÃÜÌÒAV supplies customers around the world in key industries such as mobility, building and living, as well as the electrical and electronics sector. In addition, polymers from ÃÜÌÒAV are also used in sectors such as sports and leisure, telecommunications and health, as well as in the chemical industry itself.
The company is geared completely to the circular economy. In addition, ÃÜÌÒAV aims to achieve climate neutrality for its Scope 1 and Scope 2 emissions by 2035, and the Group¡¯s Scope 3 emissions are also set to be climate neutral by 2050. ÃÜÌÒAV generated sales of EUR 14.2 billion in fiscal year 2024. At the end of 2024, the company had 46 production sites worldwide and employed approximately 17,500 people (calculated as full-time equivalents).
Forward-Looking Statements
This news release may contain forward-looking statements based on current assumptions and forecasts made by ÃÜÌÒAV. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in ÃÜÌÒAV¡¯s public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.