Symrise AG announced it has signed the Revolving Credit Facility (RCF) with a dedicated sustainability component.
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The new facility will comprise a volume of €500 million and with a duration of three years. It represents one of the group’s different financing instruments and will serve to finance additional strategic growth initiatives.
Replacing the existing Revolving Credit Facility of €300 million, which concluded in 2015, this new sustainability-linked credit facility supports Symrise’s commitment to combine economic progress and growth with sustainable and responsible action.
The better Symrise progresses in these three areas, the lower the interest margin for the new RCF facility will be. Accordingly, should the group fall short of the defined KPIs, the margin would increase. The following indicators have been defined:
- Increased ecoefficiency of greenhouse gas emissions (scope 1+2) in terms of €1 million value added.
- Further increase sustainable sourcing of strategic biological raw materials. Sustainable sourcing in this context is defined by SEDEX criteria, which encloses labor, environment, health and safety as well as business integrity.
- Increased efficiency of water consumption in arid regions where Symrise holds operational facilities. This includes Mexico, India and Egypt.
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Symrise has committed to pay any sustainability margin adjustment (both premium and discount) before the end of each relevant adjustment period as a donation to the non-profit organization “Save the Children,” specifically the “Youth Opportunities” initiative in the SAVA region of Northern Madagascar.
Olaf Klinger, CFO of Symrise AG, stated, “Sustainability belongs to the core values of Symrise’s strategy and is a pivotal part of our operations across the group. It has been a logical step to also extend it to our financing activities when considering our latest refinancing. Our efforts in strengthening Symrise’s sustainability profile will directly link to our financial profile along three clearly defined parameters for reduced greenhouse gas emissions, increased responsible sourcing and efficient water consumption.”
Bernhard Kott, chief sustainability officer at Symrise, said, “Supporting Save the Children's youth initiative in Madagascar is particularly close to our hearts. For more than a decade we have successfully worked together with local vanilla farmers and supported community programs for cultivation, farming and education. Further extending our engagement and supporting young generations is another element in our longstanding partnership in the region.”
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