Volvo Cars shifts green drive up a gear with sustainability loan on road to 2040

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By Mike Turner
13 Jan 2021

Volvo Cars, the Chinese-owned Swedish auto maker, has refinanced its main bank revolver with a €1.3bn sustainability-linked revolving credit facility, as the borrower looks to become climate neutral by 2040.

Volvo’s new loan has a three year maturity with two one year extension options. It will likely remain undrawn, serving as a back-up facility for general corporate purposes. The margin on the deal is linked to Volvo Cars’ success in reducing carbon emissions.

Citi, HSBC, Nordea and SEB were ...

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