LANXESS, a leading specialty chemicals company, has signed a new ESG-linked EUR 800 million syndicated credit facility agreement with an international consortium of eleven banks. The syndicated credit facility which may also be utilised by way of letters of credit serves to secure the company’s long-term liquidity and replaces the existing credit line ahead of schedule. The new credit line has a term of five years with extension options of up to two additional years. The credit agreement does not provide for any financial covenants.
The facility is linked to the achievement of ESG criteria. The interest rate depends on the company’s successful reduction of greenhouse gas emissions in Scope 1, 2 and 3 and the increase in the proportion of women in management positions.
Hengeler Mueller team for LANXESS
Finance: Henning Hilke (partner, lead), Tobias Chowdhury (senior associate, both Frankfurt),
Tax: Gunther Wagner (partner), Isabella Zimmerl (senior associate, both Munich).