Norsk Hydro signed a $1.6 billion revolving multi-currency credit facility with the margin linked to Hydro’s greenhouse gas emission target.
The facility, which is available for general corporate purposes, carries a five-year tenor with two one-year extension options and replaces Hydro’s undrawn $1.7 billion revolving credit facility signed in 2013.
The margin under the facility will be adjusted based on Hydro’s progress to meet its target to reduce greenhouse gas emissions by 10% by the end of 2025.
Hydro has set a new climate roadmap towards 2030 where 10% reduction in climate emissions by 2025 is an important milestone to achieve 30% reduction by 2030.
“This is a confirmation of the strong relationship between Hydro and our core banks, and the process and terms concluded, reflect trust built over many years. This is a good example of the close link between profitability and sustainability, and I am pleased that the bank syndicate are supporting our new climate roadmap to cut emissions by 30% by 2030,” says Executive Vice President and CFO, Pål Kildemo.
DNB Markets, ING Belgium and Skandinaviska Enskilda Banken acted as Co-ordinating bookrunners and mandated lead arrangers on the transaction. BNP Paribas SA Norway Branch, Crédit Agricole, Danske Bank, Handelsbanken Capital Markets, Svenska Handelsbanken and J.P. Morgan Securities joined as bookrunners and mandated lead arrangers, whilst Citigroup Global Markets, Goldman Sachs Bank USA and Nordea Bank participated in the transaction as lead arrangers. DNB will act as facility agent, and SEB acted as sustainability coordinator and documentation agent.