Telefonaktiebolaget LM Ericsson (publ) [NASDAQ: ERIC] has inked a USD 2 billion sustainability-linked revolving credit facility, renewing an undrawn USD 2 billion credit facility inked in 2013. A revolving credit facility allows the firm to withdraw money, use it to fund its business, repay it and then withdraw it again when the firm is in need. Presently, it’s one of many adaptable funding solutions in the different financial markets.
The firm has revealed that the facility has a five-year tenor with two one-year extension options available and will be the facility for general business purposes. Ericsson possesses a very strong and differentiated bank group, with 18 banks taking part. All banks welcomed to take part in the facility accepted.
Furthermore, the renewed facility has a definite link to Ericsson’s sustainability work towards a better world and its interest margin will be associated with two of Ericsson’s sustainability KPIs. The first KPI is linked to carbon neutrality in Ericsson’s own activities by 2030. The second linked with suppliers setting 1.5 C° aligned climate targets.
In addition, Ericsson has a long and successful track record in the sustainability space. The firm is delighted to connect its climate action targets to its Ericsson financial activities. This step of the firm completely indicates its business purpose, where sustainability is the basis of the way the firm is doing business.