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Global IT supplier for the aviation business, SITA has signed a $400 million inaugural sustainability-linked revolving credit facility over a minimal three-year time period. The backup facility will help the firm’s normal enterprise wants, akin to growing new options and techniques to alleviate the air transport business’s challenges of at present and in the future.
The syndication was oversubscribed. As a part of the association, 4 new banks have signed as much as help SITA along with the firm’s 5 current banking companions, underlining investor confidence in the expertise supplier. SITA’s strong value management, efficient money administration, and strengthening inexperienced credentials are components contributing to investor curiosity.
This new backup syndicated facility will supersede the firm’s earlier bilateral dedicated strains and is now immediately linked to pre-agreed environmental KPIs and yearly targets, with a bonus or a malus on the curiosity margin relying on SITA’s efficiency.
In current years, SITA has ramped up its emission discount efforts, attaining CarbonNeutral standing below The CarbonNeutral Protocol in 2021. More lately, the firm introduced its dedication to setting science-based targets by way of the Science Based Targets initiative (SBTi) to affix different main firms to fight local weather change aligned to net-zero and the 1.5C state of affairs of the Paris Agreement.
The syndicated credit facility linked to environmental efficiency is an revolutionary step ahead in the firm’s ongoing sustainability efforts. It contains vital discount targets regarding Scope 1, 2, and three greenhouse fuel emissions to align with SBTi frameworks. SITA’s efficiency towards these targets shall be externally audited.
Société Générale and Crédit Industriel et Commercial are appearing as joint coordinators and bookrunners of the transaction. Société Générale has been mandated as ‘ESG Coordinator’ and ‘Facility Agent’ whereas Crédit Industriel et Commercial acted as ‘Documentation Agent’.
In addition, Barclays, Credit Suisse, and J.P. Morgan joined as mandated lead arrangers. Bank of China, Landesbank Baden-Württemberg (LBBW), and Unicredit are collaborating as lead arrangers whereas Banco Bilbao Vizcaya Argentaria (BBVA) is collaborating as arranger.
Nicolas Husson, CFO of SITA, stated: “Sustainability is high on our agenda and we are deeply committed to ensuring a sustainable future for all, including for our employees, customers, and partners. We are delighted to secure financing that is directly linked to the performance of our sustainability ambitions.”
The submit $400-million sustainability-linked credit facility on the anvil for SITA appeared first on Travel Daily.