Vigeo Eiris provides the Spanish company Gestamp with its ESG score for the first ESG linked loan in the automobile sector
The Revolving Credit Facility linked to the ESG score has been increased in February from 280 to 325 million euros, as part of the long-term liquidity cushion of the company.
The Spanish bank BBVA cooperated with Gestamp, Spanish company that designs, develops, and manufactures components for automobile manufacturers, to link the interest margin of a revolving credit facility (RCF) to the company’s ESG rating provided by Vigeo Eiris.
The syndicated facility, set up in 2013, increased in 2016, and renewed in 2019, integrates now this ESG mechanism for the Revolving Credit Facility. This type of operation becomes the first one in the automobile sector based on a Vigeo Eiris rating.
This credit transaction follows other operations launched by Red Electrica, Iberdrola, MAPFRE, FerreyCorp or Hera, in 2018. It confirms the development of this new way to directly align the financing cost to the sustainability performance of a company.
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Revolving credit facility (RCF)