Nokian Tyres signs €200m sustainability-linked credit facility

Nokia, Finland - Nokian Tyres plc has signed a syndicated sustainability-linked revolving credit facility of €200 million with a group of five banks.

The interest margin of the revolving credit facility will increase or decrease dependent on Nokian’s meeting sustainability performance targets, said Nokian.

The performance targets, according to the Finnish tire maker's 8 Dec announcement, relate to scope 1, 2 and 3 emissions reductions.

The finance arrangement will replace an existing €175-million revolving credit facilities and will be used as a 'backup' for general corporate purposes.

The new three-year facility, which has two one-year extension options, extends the maturity structure of Nokian’s debt portfolio, said CFO Niko Haavisto, 

Mandated lead arrangers and bookrunners for the facility are: Danske Bank A/S, Nordea Bank Abp, OP Corporate Bank Plc, Skandinaviska Enskilda Banken Ab (Publ) and Swedbank Ab (Publ).