Mondi plc (LON:MNDI) has signed a new €750 million 5-year revolving multicurrency credit facility agreement to refinance the existing €750 million facility that was due to mature in July 2022. It includes an option to extend the RCF by one or two years with each bank’s approval.
The RCF incorporates key sustainability targets linked to MAP2030 (Mondi’s Action Plan to meet its ambitious 2030 sustainability goals), classifying the facility 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 UN Sustainable Development goals 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 10 relationship banks: Barclays, BBVA, Bank of America, BNP Paribas, Commerzbank, Deutsche Bank, Erste Group, Raiffeisen Bank International, SEB and UniCredit.
Mike Powell, Mondi’s Chief Financial Officer, said:
‘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.’
