Volvo Cars signs two sustainability-linked revolving credit facilities in the total of EUR 2 billion

Volvo Cars has signed a EUR 1.5 billion sustainability-linked revolving credit facility, refinancing the current EUR 1.3 billion credit facility signed in 2021.The five-year facility with a group of 22 participating banks has two one-year extension options and will serve as a backup facility for general corporate purposes.

In addition, Volvo Cars has signed a EUR 500 million sustainability-linked three-year revolving credit facility with certain Nordic banks. This facility also has two one-year extension options and is for general corporate purposes.

The two new facilities align with Volvo Cars’ sustainability strategy by linking the interest rate margin to Volvo Cars’ progress in reducing its carbon emissions across the value chain. The facilities also incorporate a performance indicator on reduction of water consumption aligning with Volvo Cars’ circular economy ambitions.

These successful transactions underline the participating banks’ support for Volvo Cars’ sustainability ambitions and their confidence in the company’s financial development.

BNP Paribas, Crédit Agricole Corporate and Investment Bank, DNB Bank ASA, Sweden Branch, and SEB acted as coordinators for the EUR 1.5 billion facility, while Crédit Agricole Corporate and Investment Bank acted as sustainability coordinator and Swedbank as agent. The 22 participating banks are well diversified and will form the core relationship bank group for Volvo Cars globally.