Volvo Cars has signed two sustainability-linked revolving credit facilities of €2bn ($2.1bn) to support its corporate and environmental goals.
The first facility, amounting to €1.5bn, refinances an existing €1.3bn credit line and includes a five-year term with options to extend for two additional years.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
This facility is backed by a consortium of 22 banks and will act as a backup for general corporate purposes.
The second facility, a €500m three-year revolving credit, involves certain Nordic banks and also features two one-year extension options.
Similar to the first, the second facility is also intended for general corporate use. Both credit facilities share a unique feature: the interest rate margin is linked to Volvo Cars’ success in reducing carbon emissions across its value chain.
Additionally, they include a performance metric related to water consumption reduction, in line with the company’s circular economy goals.
Key coordinators for the €1.5bn facility include BNP Paribas, Credit Agricole Corporate and Investment Bank, DNB Bank ASA, and SEB, with Credit Agricole acting as sustainability coordinator and Swedbank as agent.
