LANXESS signs new sustainable credit line for EUR 800 million
- Long-term liquidity secured at attractive conditions in a challenging market environment
- Compliance with ESG criteria part of interest rate conditions
- Syndicate of 11 banks
LANXESS has agreed a new syndicated credit facility with 11 banks. With a volume of EUR 800 million, it serves to secure the company’s long-term liquidity and replaces the existing credit line ahead of schedule. The basic term of the new credit line is five years, with two one-year extension options. The credit agreement is still not subject to any financial covenants.
“In line with our conservative financing policy, we refinanced our debt at an early stage. This not only enables us to meet the macroeconomic challenges in times of geopolitical tension, but also allows us to secure attractive conditions” says Oliver Stratmann, Chief Financial Officer of LANXESS AG.
The new credit line is linked to the achievement of ESG (Environment, Social and Governance) criteria. The interest rate depends on the company’s successful reduction of greenhouse gas emissions in Scope 1, 2 and 3 and the increase in the proportion of women in management positions.
“In recent years, it has become clear that sustainable criteria for financing are of consistently high importance on the capital markets. That is why we have continued the existing financing concept with our banking partners. The sustainable credit line also underscores our commitment to achieving our ambitious climate targets,” says Oliver Stratmann.
The transaction was coordinated by Deutsche Bank and UniCredit.
Forward-Looking Statements
This company release contains certain forward-looking statements, including assumptions, opinions, expectations and views of the company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or performance of LANXESS AG to differ materially from the estimations expressed or implied herein. LANXESS AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors, nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecast developments. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, any information, estimates, targets and opinions contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and accordingly, no representative of LANXESS AG or any of its affiliated companies or any of such person's officers, directors or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.
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