TKH Group NV (“TKH”) has signed a new sustainability-linked € 625 million multicurrency committed credit facility, consisting of a revolving credit facility (“RCF”) of € 500 million and a term loan of € 125 million.
The new RCF replaces the current committed RCF of € 500 million, which has been in place since January 2017. The term loan will be used to finance strategic investments and working capital needs as TKH continues to grow.
The sustainability targets in the € 625 million multicurrency credit facility are linked to the achievement of TKH’s key ESG targets as set out in our Accelerate 2025 strategy program, relating to CO2 intensity (scopes 1 and 2), waste reduction, and gender diversity within our executive and senior management teams.
The new revolving credit facility of € 500 million has a maturity of 5 years, with two one-year extension options, subject to the banks’ approval. The term loan of € 125 million has a maturity of 3 years. In addition, the credit facility contains a framework for € 275 million uncommitted credit facilities, replacing the previous framework of € 265 million.
Elling de Lange, CFO of TKH Group commented: “We are pleased with the banks’ full support in executing TKH’s Accelerate 2025 strategy program, which contains both an ambitious growth path as well as a clear ESG roadmap and targets. As a technology leader in the markets we operate in, we contribute strongly to how our markets and customers automate, digitalize and connect in a sustainable way. We are therefore very happy that our core banks support us, by providing a new loan facility that is directly linked to our sustainability goals. With this credit facility, we have the flexibility to execute on our growth strategy, which includes our strategic investment program aimed at expanding our capacity in the markets we operate in.”
This refinancing is secured at comparable conditions to the previous committed credit facility. A sustainability-linked adjustment will provide for a maximum discount or premium of 2.5 basis points on the credit margin.
Haaksbergen, February 14, 2023
The complete press release can be downloaded in PDF