Lanxess Signs “sustainable” Revolving Credit Facility
In a move setting it apart from most of its European peers, German specialty chemical producer Lanxess has agreed a new €1 billion syndicated credit facility carrying interest conditions linked to the successful reduction of its greenhouse gas emissions (Scope 1) and the increase in the proportion of women on the top three management levels.
The new facility with an initial term of five years as well as two options for one-year extensions replaces the syndicated loan of €1.25 billion expiring in May 2023.
With the new financial instrument, CFO Michael Pontzen said Lanxess is using the good capital market environment and its solid investment grade rating to secure its long-term financing on attractive terms while also underlining its commitment to achieving ambitious climate targets
Pontzen said Lanxess developed the “innovative financing concept” together with 12 banking partners as it is convinced that sustainable criteria are also becoming increasingly important for the capital markets.
Last month, the company announced that it will go climate neutral and eliminate its greenhouse gas emissions of currently around 3.2 million t/y of CO2 by 2040. This is ten years ahead of the German chemical industry’s target.