Multinational packaging and paper group Mondi has signed a new €750-million five-year multicurrency revolving credit facility (RCF) agreement to refinance an existing facility that was due to mature in July 2022.
Mondi explains in a release that the RCF incorporates key sustainability targets linked to Mondi’s Action Plan (MAP2030), which contains ambitious 2030 sustainability goals.
The facility is classified as a sustainability-linked loan.
MAP2030 is designed to tackle global issues across the value chain with commitments focused on three action areas: circular-driven packaging and paper solutions, created by empowered people, taking action on climate.
All areas are aligned with the United Nations Sustainable Development Goals (SDGs) – as part of Mondi’s focus on being sustainable by design.
Under the terms of the agreement, the margin will be adjusted according to the group’s performance against specified sustainability targets.
The facility was self-arranged with ten banks, namely Barclays, BBVA, Bank of America, BNP Paribas, Commerzbank, Deutsche Bank, Erste Group, Raiffeisen Bank International, SEB and UniCredit.
The RCF includes an option to be extended by one or two years, with each bank’s approval.
“We are pleased to align our financing to our sustainability framework. Sustainability is at the centre of our purpose, culture and strategy to drive value accretive growth for the benefit of all our stakeholders.
“The group’s financial position remains strong. The RCF will extend our debt maturity profile and reinforces the strong relationships we have with our banking partners,” says CFO Mike Powell.