Nexperia announced the successful signing of their USD 800 million equivalent senior Revolving Credit Facility (RCF). The RCF was substantially oversubscribed with participation from a dozen European, Asian and international banks, an indication of the strong support for Nexperia in the loan market. Proceeds will be earmarked towards the refinancing, general corporate and working capital purposes.
The RCF constitutes Nexperia’s first Sustainability Linked Loan (SLL) and includes environmental and social Key Performance Indicators (KPIs) relating to greenhouse gas emissions and gender diversity with a focus on including more women in management positions. The RCF represents Nexperia’s long-lasting commitment to creating a positive impact on society and the environment as it embarks on its next stage of expansion. To further enhance transparency and governance of the SLL, these KPIs are supported by a second party opinion from Sustainalytics and will be independently assured annually by a third party.
Stefan Tilger, Chief Financial Officer of Nexperia, said: “We are delighted with the strong support received from existing and new lenders from across the world, which underscores Nexperia’s operational excellence and global footprint. Earlier this year, Nexperia issued its first Sustainability Report and announced its target of achieving carbon neutrality by 2035. Structuring this financing as a Sustainability-Linked Loan is a reaffirmation of our commitment to Nexperia’s Environmental and Social ambitions.”
Amit Sinha, Global Head of TMT at DBS Bank Ltd., said: “DBS Bank has been a steadfast supporter of Nexperia over the years, and we are grateful for the opportunity to lead this financing as Nexperia embarks on its next growth stage”.
“The strong oversubscription by lenders across Europe and Asia is driven by Nexperia’s market position as global leader in Discretes, Logic and MOSFETs and solid financial standing. The KPIs are a testament to Nexperia’s commitment to foster innovations and creative solutions that add value for our customers, communities, and our planet.”, added Mildred Chua, Group Head of Syndicated Finance at DBS Bank Ltd.
DBS Bank Ltd. acted as Sole Original Mandated Lead Arranger, Bookrunner and Sustainability Coordinator for the RCF. Houthoff London LLP and Clifford Chance LLP acted as the borrower’s and lenders’ legal counsel respectively.
Original – Nexperia