Siemens Gas and Power (Siemens Energy) has closed a three billion euros ($3.55 billion) sustainability linked syndicated multi-currency revolving credit facility with an international consortium of banks.

The loan amounts, whose interest rate is also linked to sustainability criteria, can be drawn in various currencies. The deal also incorporates a Swingline option of one billion euros for funds that can be drawn at very short notice.

A key component of the credit line is the link to sustainability: the financing costs are linked to the fulfilment of defined key performance indicators (KPI) referring to environmental, social and corporate governance criteria (Environmental, Social and Governance, ESG), which help to reduce the emission of greenhouse gases (CO2 Equivalent) and Lost Time Injury Frequency Rate (LTIFR).

"We are already very well financed for our planned listing at the end of September. The new credit line will provide Siemens Energy with additional financing that can be drawn on at short notice, thus ensuring additional flexibility”, said Maria Ferraro, CFO of Siemens Energy.

The agreement has a term of three years with two one-year extension options and serves general corporate purposes.

Having raised more than 4.5 billion euros commitments from the banks, the transaction has proven highly popular in the market. Due to this huge oversubscription commitments were significantly scaled back, a Siemens statement said. - TradeArabia News Service