Stockholm (NordSIP) – On December 10th, Electrolux announced it had entered into a new €1 billion multi-currency revolving credit facility agreement linked to its sustainability goals, with a group of 11 banks.
“We welcome the support offered by this credit facility. It reflects our commitment to continue to be an industry leader in sustainability, and is a confirmation of our sustainability credentials,” says Vanessa Butani (Pictured), Electrolux VP Sustainability.
The Sustainable Credit Facility
The new facility has a five-year maturity, with options to extend for up to two more years. It was oversubscribed during syndication, allowing Electrolux the room to increase its size from the original €900 million. The funds will be used for general corporate purposes. It refinances an equally-sized pre-existing syndicated facility which was due to mature in May 2023.
The coordinating Bookrunners and Mandated Lead Arrangers are Citi and SEB. In addition, Danske Bank, Deutsche Bank and HSBC joined as Bookrunners and Mandated Lead Arrangers, while Banco Bradesco, BNP Paribas, JP Morgan, Morgan Stanley, Svenska Handelsbanken and Swedbank joined as Mandated Lead Arrangers in the facility. Citi was the Documentation Agent for the facility, SEB the Sustainability Coordinator and Danske Bank the Facility Agent.
“It is a sign of Electrolux financial strength and credibility that we are able to achieve such a facility in today’s economic climate,” says Martin Bendixen, Group Treasurer.
The Sustainability Framework
Electrolux’s climate targets are organised between long- and short-term goals. The company’s long-term sustainability ambition is to ensure its entire value chain is climate neutral by 2050, in support of a 1.5°C global warming scenario. In the short-term, the company has two targets that are meant to act as stepping stones to its long-term ambitions.
The first such short-term target is a science-based target, which aims to reduce Electrolux’s Scope 1 and 2 emissions by 80% between 2015 and 2025, and the absolute scope 3 emissions from the use of our sold products by 25% during the same time period. The scope 3 target covers two-thirds of all products sold by Electrolux.
The second short term target is defined by the Group’s “For the Better 2030” sustainability framework target. The credit facility is tied to this framework, which describes the company’s ambition to be climate neutral in operations by 2030 (scope 1 and 2 emissions), a leader in CO2-reducing energy-efficient products and to continue ensuring the health and safety of employees.