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Packaging And Design

Mondi Obtains €750m Revolving Credit Facility

Packaging group Mondi has signed a €750 million revolving credit facility linked to its 2030 sustainable development goals.

The five-year revolving multicurrency credit facility agreement ('RCF') will refinance the existing €750 million facility, due to mature in July 2022.

The agreement also offers the option to extend the RCF by one or two years with each bank's approval.

The RCF incorporates key sustainability targets linked to MAP2030 – Mondi's Action Plan to meet its 2030 sustainability goals – classifying the facility as a sustainability-linked loan.

MAP2030 aims to tackle global issues across the value chain and focuses on circular-driven packaging and paper solutions, among others.

All focus areas in the company's action plan align with the UN Sustainable Development Goals, Mondi added.

'Sustainability Framework'

Chief financial officer of Mondi, Mike Powell, stated, "We are pleased to align our financing to our sustainability framework. Sustainability is at the centre of our purpose, culture and strategy to drive value accretive growth for the benefit of all our stakeholders.

"The group's financial position remains strong. The RCF will extend our debt maturity profile and reinforces the strong relationships we have with our banking partners."

Under the terms of the agreement, the margin will be adjusted according to the group's performance against specified sustainability targets.

The facility was self-arranged with ten banks: Barclays, BBVA, Bank of America, BNP Paribas, Commerzbank, Deutsche Bank, Erste Group, Raiffeisen Bank International, SEB and UniCredit, the company added.

Mondi: 2020 Performance

The packaging company reported a largely positive set of results for its 2020 financial year, despite the challenges posed by COVID-19. The group ended 2020 with an underlying EBITDA of €1.35 billion, down from 2019's figure of €1.66 billion.

The group's figures were generally down in comparison to the previous year due to the pandemic, however the total dividend per share was up 5% compared to 2019.

© 2021 European Supermarket Magazine. Article by Dayeeta Das. For more Packaging news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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