Nokian Tyres says it has signed a syndicated sustainability-linked revolving credit facility of EUR200 million with a group of five banks. The interest margin of the revolving credit facility will increase or decrease dependent on Nokian Tyres meeting sustainability performance targets related to Scope 1, 2 and 3 reductions.
The new facility will replace a total of EUR175 million of existing revolving credit facilities, and it will be used as a backup for general corporate purposes. The three-year facility has two one-year extension options.
“We are pleased to have successfully completed this financial backup transaction, and appreciate the trust we have received from the banks in Nokian Tyres’ long-term growth strategy. This arrangement also extends the maturity structure of our debt portfolio,” says Niko Haavisto, CFO of Nokian Tyres.
Mandated Lead Arrangers and Bookrunners for the facility were Danske Bank A/S, Nordea Bank Abp, OP Corporate Bank Plc, Skandinaviska Enskilda Banken Ab (Publ) and Swedbank Ab (Publ).
Nordea Bank Abp acted as Coordinator, Sustainability Coordinator and Facility Agent.