Philips links €1bn loan interest rates to green performance

Royal Philips’ new loan worth €1 billion (£836m) links interest rate to sustainable performance. The health technology firm is collaborating with 16 banks to work on the Revolving Credit Facility, which […]

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By Jonny Bairstow

Royal Philips’ new loan worth €1 billion (£836m) links interest rate to sustainable performance.

The health technology firm is collaborating with 16 banks to work on the Revolving Credit Facility, which will adjust the firm’s interest rate depending on its year-on-year green successes.

The large banking firms include ING, Goldman Sachs, HSBC, Morgan Stanley and Société Générale.

Royal Philips’ current sustainability performance has been independently assessed and the resulting score will be used as the benchmark against which its future improvements are calculated.

Abhijit Bhattacharya, CFO of Royal Philips, said: “I am pleased that following the launch of our ambitious ‘Healthy people, sustainable planet’ programme last year, we are now able to link the interest rate structure of our new Revolving Credit Facility to our sustainability performance.”