Nokian Tyres signs sustainability-linked credit facility

Nokian Tyres plc has today signed a syndicated revolving credit facility of 200 million euros with a group of five banks, which will replace a total of 175 million euros of existing credit facilities. The company will use the three-year facility, which has two one-year extension options, as a back-up for general corporate purposes.

As a sustainability-linked credit facility, the interest margin will increase or decrease depending upon Nokian Tyres meeting sustainability performance targets related to Scope 1, 2 and 3 reductions.

“We are pleased to have successfully completed this financial backup transaction and appreciate the trust we have received from the banks in Nokian Tyres’ long-term growth strategy. This arrangement also extends the maturity structure of our debt portfolio,” says Niko Haavisto, chief financial officer of Nokian Tyres.

The facility’s Mandated Lead Arrangers and Bookrunners were Danske Bank A/S, Nordea Bank Abp, OP Corporate Bank Plc, Skandinaviska Enskilda Banken Ab (Publ) and Swedbank Ab (Publ). Nordea Bank Abp acted as Coordinator, Sustainability Coordinator and Facility Agent.