Brenntag has closed a new €1.5 billion syndicated credit facility effective February 17, 2023. This new credit facility has a tenor of five years. It was signed with a group of 17 core banks, and replaces the syndicated credit facility of a similar amount that expires in January 2024. It is divided into two credit lines: a €1 billion credit line that can be drawn in various currencies and a credit line of $525 million.

In a first for Brenntag, the interest conditions of the credit facility were also linked to the achievement of quantitative ESG criteria. The ESG targets defined for this credit facility are derived from the ESG strategy targets for 2030, which Brenntag already redefined last year, and relate to the following areas:

  • reduction of greenhouse gas emissions (Scope 1 and Scope 2).
  • further increase in occupational safety.
  • increasing the proportion of female employees at various management levels.

An improvement in the three areas would benefit Brenntag in the form of lower borrowing rates; failure to achieve the targets set, on the other hand, would result in higher borrowing rates.

"Together with the promissory note (Schuldschein) issued last year, the new credit facility serves to secure the group's liquidity in the long term and creates the conditions for our further growth path," said Kristin Neumann, Ph.D., CFO of Brenntag SE. "We were able to leverage our solid investment grade rating, as well as our excellent relationships with our core banks to secure the long-term financing of our company at attractive conditions.”

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