News
The interest on the Dutch operator’s loan will be directly linked to three sustainability metrics
KPN has concluded a €1 billion credit facility, refinancing an existing credit line from 2016, this time tying the loan’s interest directly to its sustainability goals.
The new credit facility has a maturity of five years, with two one-year renewable options, with the funds primarily to be used as a liquid reserve.
Refinancing of this kind, working with a syndicate of 12 banks, is very common for large corporations, but what is interesting here is the factors that will define how much interest is paid on the loan. This deal identifies three key metrics, all related to sustainability, that will be considered.
– The acceleration of digitalisation within the Netherlands as a result of rolling out fibre,
– The reduction of KPN’s energy consumption,
– And the reduction of carbon emissions in KPN’s supply chain (Scope 3 CO2-equivalent emissions).
“This is an important facility for KPN which provides financial flexibility and ensures we maintain our solid liquidity position. By directly linking our cost of borrowing to our ambitious sustainability agenda we underline the importance and our commitment to all stakeholders,” said Chris Figee, CFO of KPN.
In announcing this new credit line, KPN notes that sustainability has been at the heart of its strategy over the last decade, noting that their energy consumption has decreased by 37% over the past decade, during which time data traffic has increased by almost 2,100%.
Looking to the future, KPN has already pledged to have net-zero carbon emissions across its entire supply chain by 2040.
In an industry where green commitments are mere lip service far too often, KPN is here putting its money where its mouth is when it comes to sustainability and this credit facility.
Want to keep up to date with the latest developments in the world of telecoms? Subscriber to receive Total Telecom’s daily newsletter here
Also in the news:
