Yara has signed a $1.1 million five-year multicurrency revolving credit facility with two one-year extension options
The RCF refinances Yara’s revolving credit facility dated July 5, 2013 and will be available for general corporate purposes. The facility has been signed by a group of 13 international relationship banks, reflecting Yara’s global footprint.
The transaction was coordinated by Barclays Bank, Citigroup Global Markets, Crédit Agricole Corporate and Investment Bank and Sumitomo Mitsui Banking Corporation. Citibank Europe acted as facility agent, and Crédit Agricole Corporate and Investment Bank acted as sustainability agent.
In addition to the four coordinating bookrunners, nine banks committed in the facility: Danske Bank as a bookrunner, BNP Paribas, Commerzbank, Deutsche Bank, JPMorgan, NatWest Markets, Société Générale as mandated lead arrangers, and Fifth Third Bank and Banco Itaú as lead arrangers.
The margin under the facility will be adjusted based on Yara’s progress to meet its carbon intensity target by 2025:
- By introducing a sustainability link in its RCF, Yara highlights its commitment to reduce the carbon footprint of its fertilizer production activities
- The production of mineral fertilizer contributes to GHG emissions. Yara has already made large improvements in this area, and will continue to improve to meet its new carbon intensity target
- Yara’s carbon intensity target is to achieve a 10% reduction of greenhouse gas emissions per tonne of fertilizer produced (tCO2eq/tN) by 2025. Reaching this target will result in more than 2.2 MtCO2eq saved annually by 2025 (at constant 2018 volumes)
“Reducing greenhouse gas emission intensity is part of delivering on Yara’s mission of responsibly feeding the world and protecting the planet. By connecting financing to carbon footprint performance, we confirm a clear link between sustainability and profitability,” says Lars Røsæg, CFO of Yara International.
Yara is a Norwegian-based chemical company.