Norsk Hydro on December 12, 2019, signed a USD 1,600 million revolving multi-currency credit facility with margin linked to reduction target for greenhouse gas emissions. The revolving credit facility will be available for general corporate purposes.

The facility carries a five-year tenor with two one-year extension options. This will replace Hydro’s undrawn USD 1,700 million revolving credit facility signed in 2013.

“This is a confirmation of the strong relationship between Hydro and our core banks, and the process and terms concluded, reflect trust built over many years. This is a good example of the close link between profitability and sustainability, and I am pleased that the bank syndicate is supporting our new climate roadmap to cut emissions by 30% by 2030," said Executive Vice President and CFO, Pål Kildemo.

The margin under the facility will be adjusted based on Hydro’s progress to meet its target to reduce greenhouse gas emissions by 10% by the end of 2025.

Hydro has set a new climate roadmap towards 2030. Through greener sourcing and greener production, the company aims to reduce its emissions by 10% in 2025 and by 30% in 2030.

DNB Markets, a part of DNB Bank ASA (“DNB”), ING Belgium SA/NV and Skandinaviska Enskilda Banken AB (publ) (“SEB”) acted as Co-ordinating Bookrunners and Mandated Lead Arrangers on the transaction, Hydro said.

DNB will act as Facility Agent, and SEB acted as Sustainability Coordinator and Documentation Agent.

In addition, BNP Paribas SA Norway Branch, Crédit Agricole Corporate and Investment Bank, Danske Bank A/S, Handelsbanken Capital Markets, Svenska Handelsbanken AB (publ) and J.P. Morgan Securities plc joined as Bookrunners and Mandated Lead Arrangers, whilst Citibank, N.A., Jersey Branch, Goldman Sachs Bank USA and Nordea Bank Abp, Norwegian branch, participated in the transaction as Lead Arrangers.