Home appliance manufacturer Electrolux announced today that it has signed its inaugural €1 billion credit facility, with costs on the debt tied to the company’s performance against a series of ESG goals.
Vanessa Butani, Electrolux VP Sustainability, said:
“We welcome the support offered by this credit facility. It reflects our commitment to continue to be an industry leader in sustainability, and is a confirmation of our sustainability credentials.”
Sustainability linked loans and securities are an emerging form of sustainable finance instruments, with attributes including interest payments tied to an issuer’s achievement of specific sustainability targets. Under Electrolux’s new credit facility, margins will tied to goals under the company’s Group’s “For the Better 2030” sustainability framework, which include achieving climate neutrality and being a leader in product efficiency for key product categories and markets by 2030, along with employee health and safety goals.
According to Electrolux, the facility was oversubscribed, and upsized from its initial launch amount of €900 million.
Martin Bendixen, Electrolux Group Treasurer, said:
“It is a sign of Electrolux financial strength and credibility that we are able to achieve such a facility in today’s economic climate.”