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.
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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.
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By GlobalDataKey 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.
