LANXESS has agreed a new syndicated credit facility with 11 banks. With a volume of EUR 800 million, it serves to secure the company’s long-term liquidity and replaces the existing credit line ahead of schedule. The basic term of the new credit line is five years, with two one-year extension options. The credit agreement is still not subject to any financial covenants.

“In line with our conservative financing policy, we refinanced our debt at an early stage. This not only enables us to meet the macroeconomic challenges in times of geopolitical tension, but also allows us to secure attractive conditions” says Oliver Stratmann, Chief Financial Officer of LANXESS AG.

The new credit line is linked to the achievement of ESG (Environment, Social and Governance) 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.

“In recent years, it has become clear that sustainable criteria for financing are of consistently high importance on the capital markets. That is why we have continued the existing financing concept with our banking partners. The sustainable credit line also underscores our commitment to achieving our ambitious climate targets,” says Oliver Stratmann.

The transaction was coordinated by Deutsche Bank and UniCredit.