“We are pleased to have banking partners that value sustainability. The new sustainability linked loan facilities show that is possible to get better financial terms for companies that strive to make a planet-positive contribution. This is an efficient way to nudge companies in the right direction,” says Ingunn Ettestøl, ESG Director at Arendals Fossekompani.
As of today, Arendals Fossekompani has a positive net cash position. However, it is essential to have instruments in place to provide financial capacity when needed, for instance to make new acquisitions or to support the existing portfolio companies. Thus, three new revolving loan facilities are provided by Handelsbanken and Danske Bank for a duration of five to seven years, including options for extensions.
“We are pleased to have secured new long-term credit facilities at better terms. This provides stability and predictability. And for the first time, all credit facilities are linked to sustainability targets. If and when we reach the agreed-upon targets, it will trigger a lower interest rate. It is a small discount, but the very principle of being rewarded for continuously improving our sustainability position, is important to us,” says Lars Peder Fensli, CFO at Arendals Fossekompani.