Covestro signs €2.5 billion new syndicated revolving credit facility with ESG element for the first time
Covestro has successfully signed a contract with its 16 core banks for a new syndicated revolving credit facility for €2.5 billion.
The facility can be drawn in different currencies and will be used as a standby backup liquidity reserve.
The new facility replaces the existing €1.5 billion revolving credit line, which was also a backup liquidity facility.
It provides Covestro with additional financial flexibility and increased liquidity reserves.
Dr Thomas Toepfer, CFO of Covestro, said: “We decided at the end of 2019 to increase our liquidity resources with a new €2.5 billion syndicated revolving credit facility, which is provided by all our core relationship banks.”
“This facility ensures we have considerable financial leeway over the next few years. By linking the interest on the facility to an ESG rating, we are embedding sustainability as a topical focus in all areas of our business and setting ourselves ambitious targets.”