Orange signs sustainability-linked refinancing of €6bn credit facility
Orange has signed an agreement for a sustainability-liked refinancing of its €6 billion syndicated credit facility with 27 banks.
The refinancing reflects Orange’s commitment to environmental and social responsibility and is linked to achieving sustainability targets relating to CO2 emissions, as it looks to become net zero by 2040.
“This refinancing is part of the Group’s prudent liquidity management, and the high oversubscription demonstrates the strong support of Orange’s core relationship financial partners,” Ramon Fernanez, group chief financial officer at Orange.
“Through this Sustainability-linked transaction, we reaffirm Orange’s strong social and environmental commitments which are at the centre of its Purpose, and our ambition to tie our financing policy with our CSR strategy”.
The facility has an initial maturity of November 2027 and includes two one-year extension options and can be exercised by Orange and are subject to the approval of the banks.
A sustainability-linked adjustment will provide for a maximum discount or premium of 2.25 basis points.
Orange previously said that it had committed to "drastically reducing" its CO2 emissions directly linked to its businesses and aims for a 30% reduction by 2025 compared to its 2015 emissions.
The French company adds that its Green ITN programme has resulted in it avoiding approximately three million metric tons of CO2 between 2010 and 2019 by improving energy efficiency.