“Sustainability is at the center of our company’s mission to realize innovations that improve the way people move, live, work and play,” Paolo Ferrari, president and CEO of Bridgestone Americas, said. “We will continue to take bold steps to fulfill our commitment to our customers and to society as we endeavor to be a world-leading sustainable solutions company.”
The financing features a sustainability-linked pricing adjustment mechanism that adjusts the interest rate based on the environmental, social and governance (ESG) risk rating of Bridgestone, as determined by Sustainalytics, as well as by the ESG rating of FTSE Russell. Both organizations are independent providers of environmental, social and governance ratings. As Bridgestone’s sustainability ratings improve, borrowing costs will be reduced. The sustainability mechanism was structured in accordance with the sustainability-linked loan principles promulgated by the syndicated loan market industry associations.
“This committed credit facility reinforces our commitment to sustainability by linking the rate structure of the facility to independent assessments of our continued efforts to advance Bridgestone’s sustainability practices,” Jose Anes, vice president and corporate treasurer of Bridgestone Americas, said.
“SMBC is excited to help our partners at Bridgestone Americas further elevate their position and stake as a sustainability leader in the tire industry through this revolving credit facility,” Hiro Hyakutome, CEO and head of the SMBC Americas division, said. “Our deep and well-recognized expertise in green loans and sustainability-linked loans helps our global clients achieve their near- and longer-term ESG objectives. We look forward to continuing to help support Bridgestone’s sustainability initiatives.”