Orange signed with 27 international banks a new sustainability-linked multi-currency €6 billion ($6.2 billion) syndicated revolving facility in order to refinance in advance the existing facility expiring December 2023.
This sustainability-linked refinancing reflects the group’s commitments in terms of environmental and social responsibility, as the margin is linked to the achievement of sustainability targets relating to CO2 emissions, supporting its aim to become Net Zero Carbon by 2040, and gender diversity.
“This refinancing is part of the group’s prudent liquidity management, and the high oversubscription demonstrates the strong support of Orange’s core relationship financial partners,” Ramon Fernandez, group chief financial officer, said. “Through this sustainability-linked transaction, we reaffirm Orange’s strong social and environmental commitments which are at the center of its purpose, and our ambition to tie our financing policy with our CSR strategy”.
The new facility, which has an initial November 2027 maturity, includes two one-year extension options. Such extension options can be exercised by Orange and are subject to the banks’ approval.
This refinancing is secured at attractive conditions, with an opening margin of 25 basis points per year. A sustainability-linked adjustment will provide for a maximum discount or premium of 2.25 basis points.
For this transaction, Crédit Agricole Corporate and Investment Bank acted as ESG coordinator and facility agent. Bank of America and Natixis acted as documentation agents and coordinators. The credit facility has been committed by 27 global financial institutions, among which the same pool as the previous facility who reconfirmed their support to Orange, and three additional international banks in order to reflect Orange’s business evolution.