Ericsson signed a $2 billion sustainability-linked revolving credit facility, renewing an undrawn $2 billion credit facility signed in 2013. HSBC and SEB acted as coordinators for the facility, with SEB also acting as sustainability coordinator. Swedbank is the facility agent.
The renewed facility’s interest margin will be linked to two of Ericsson’s sustainability KPIs. The first KPI is tied to carbon neutrality in Ericsson’s own operations by 2030 and the second connects with suppliers setting 1.5 degrees Celcius aligned climate targets.
The facility has a five-year tenor with two one-year extension options and will serve as a facility for general corporate purposes. There are 18 banks participating in the lender group for the facility.
“Sustainability is an integral part of Ericsson’s strategy and has been critical for our success in recent years, not least when it comes to work within energy consumption and the energy performance of our products,” Carl Mellander, CFO of Ericsson, said. “Incorporating sustainability KPIs into this new credit facility is an important step in our continuous work to integrate our sustainability ambitions throughout our operations”.
“With over two decades of sustainability research and lifecycle assessments, Ericsson has a long and proud history in the sustainability space,” Heather Johnson, vice president of sustainability and corporate responsibility at Ericsson, said. “We are delighted that we now also can link our climate action targets to our Ericsson financial activities. Taking this step fully reflects our company purpose, where sustainability is fundamental to the way we do business.”