Bridgestone Americas announces the issue of a US$1.1 billion sustainability-linked credit facility, one of the first of its kind in the US tyre industry.
According to Paolo Ferrari, President and CEO of Bridgestone Americas, the move underscores the company’s commitment to sustainability and its mission to be a world-leading sustainable solutions company.
Bridgestone partnered with SMBC, a Tokyo-headquartered global bank and pioneer in sustainable and positive impact loans, to execute this inaugural syndicated sustainability-linked credit facility.
The financing features a sustainability-linked pricing adjustment mechanism that adjusts 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 leading independent providers of environmental, social, and governance ratings. As Bridgestone 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, stated the Nashville, Tennessee-based company and subsidiary of Bridgestone Corporation.
Bridgestone’s sustainability achievements have been recognised by indexes and rankings such as FTSE4Good, STOXX, and CDP, where Bridgestone has earned an “A” for Climate Disclosure, among others.