KPN has concluded a €1 billion ($1.176bn) sustainability-linked credit facility.
The Dutch telco’s interest on the loan is linked to its sustainability performance in the coming years.
The company will be marked against three strategic sustainability objectives: fiber roll out in the Netherlands through the roll-out of fiber optics, reduction of energy consumption, and the reduction of CO2 emissions throughout the chain (Scope 3 emissions).
The Sustainability-Linked Revolving Credit Facility is a refinancing of an existing credit facility from 2016. The new facility, which saw 12 banks participate, has a maturity of five years with two one-year extension options.
“This is an important financing agreement for KPN that brings financial flexibility and ensures that we maintain our solid liquidity position,” said Chris Figee, CFO of KPN. “Linking our sustainability performance to our financing structure underlines our commitment and fits KPN as one of the most sustainable telecom companies in the world.” The new facility has a five-year term with two one-year renewal options. The credit facility replaces the existing facility from 2016 and is mainly used as a liquidity reserve.
KPN has been utilizing 100 percent green energy since 2011, has been climate neutral since 2015, and aims to be virtually circular by 2025.
Earlier this year the telco announced it was targeting net-zero emissions in the chain by 2040. It said at the time its efforts around this would include improving the energy settings of TV receivers, more sustainable transport of products and equipment by suppliers, and using less material in the production of equipment.
Last week Spanish & Latin American data center firm Nabiax converted €320 million ($379.5m) in financing into a sustainable format where it would be judged on goals related to greenhouse gases and water treatment, and gender equality targets.
Last year Texas-based wholesale firm Aligned became the first data center company to receive a sustainability-linked loan (SLL); raising $1 billion for both sustainability initiatives and general expansion with the interest rate tied to sustainability goals. The company added a further $250 million to the loan last month after hitting its previous targets.