Borregaard ASA: New long-term credit facilities with margin linked to sustainability targets
Borregaard has today entered into three bilateral multicurrency revolving credit facility agreements with DNB Bank ASA, Skandinaviska Enskilda Banken AB (publ) («SEB») and Handelsbanken, Norwegian Branch of Svenska Handelsbanken AB (publ), respectively. The facilities, which are linked to sustainability targets, amount in total to NOK 1,500 million, with each bank providing NOK 500 million.
The margin under the respective facilities can be adjusted based on Borregaard’s progress on three parameters: (i) the Group’s 2030 target of reducing greenhouse gas emissions (Scope 1 and 2) by 53% compared with 2009 as approved by the Science Based Target initiative, (ii) reduction of the Group’s total recordable injuries and (iii) keeping emissions of organic compounds to the Glomma river below certain levels.
The facilities have tenors of three and five years with two one-year extension options. The new facilities are for general corporate purposes and replace the NOK 1,500 million revolving credit facilities with maturity in 2021.
SEB acted as Sustainability Coordinator for the facilities and Handelsbanken Capital Markets, Svenska Handelsbanken AB (publ) acted as Documentation Agent.
Sarpsborg, 7 July 2020
Contact:
CFO, Per Bjarne Lyngstad, mobile
This information is subject to the disclosure requirements pursuant to Section 5 -12 of the Norwegian Securities Trading Act.
