DKSH Closes Second Sustainability-Linked Loan With Existing CHF 150 Million Revolving Credit Facility

DKSH Management Ltd. / Key word(s): Bond/Sustainability DKSH Closes Second Sustainability-Linked Loan With Existing CHF 150 Million Revolving Credit Facility 05.10.2023 / 07:00 CET/CEST Media release

DKSH has converted its existing CHF 150 million revolving credit facility loan into a sustainability-linked revolving credit facility. This is the second sustainable finance instrument DKSH has entered into within this year, further strengthening its commitment to increase gender diversity in its senior leadership team positions, and become climate neutral (Scope 1+2) by 2030.

Zurich, Switzerland, October 5, 2023 – DKSH, a leading Market Expansion Services provider and trusted partner for companies looking to grow in Asia and beyond, has converted an existing CHF 150 million revolving credit facility (RCF) into a sustainability-linked RCF. The conversion of this loan was signed by a syndicate of six banks, with the Australia and New Zealand Banking Group Limited (ANZ) acting as the Sustainability Coordinator.
 
This sustainability-linked RCF is linked to its social and environmental commitments – to increase gender diversity in its senior leadership team positions, and to become climate neutral (Scope 1+2) by 2030. Achieving the agreed-upon targets would result in lower borrowing rates for DKSH, whereas failure to reach the targets would equally entail higher borrowing rates.

The sustainability-linked RCF includes an accordion feature which provides flexibility to increase the size of the RCF by up to CHF 150 million through existing lenders, or through the additional facility commitments by any existing lender, and/or the introduction of new lenders.

Earlier in May this year, DKSH signed a sustainability-linked loan for CHF 315 million, linked to the same key performance indicators.
 
Ido Wallach, DKSH CFO, stated: “This second sustainability-linked facility demonstrates how sustainability has become a true way of life in DKSH, and the confidence of our banking partners in supporting it.”