Volvo Cars has solidified its commitment to sustainability by signing two new sustainability-linked revolving credit facilities totaling €2 billion. These facilities are tied to the company’s progress in reducing carbon emissions and water consumption, reinforcing its focus on sustainable and circular business practices.
The first facility, a €1.5 billion five-year agreement with 22 global banks, replaces a €1.3 billion facility signed in 2021. Featuring two one-year extension options, this facility is designated for general corporate purposes and highlights strong support from Volvo’s banking partners.
In parallel, Volvo Cars has signed a €500 million three-year revolving credit facility with select Nordic banks, also incorporating two one-year extension options. Like its larger counterpart, this facility is sustainability-linked and intended for general corporate use.
The interest rate margins of both facilities are tied to Volvo Cars’ achievements in reducing carbon emissions across its value chain and water consumption levels, in alignment with its circular economy ambitions.
“This successful refinancing demonstrates the banking community’s confidence in Volvo Cars’ financial health and sustainability strategy,” the company said.
BNP Paribas, Crédit Agricole CIB, DNB Bank ASA Sweden Branch, and SEB acted as coordinators for the €1.5 billion facility, with Crédit Agricole CIB serving as sustainability coordinator and Swedbank as agent. Together, the 22 participating banks form Volvo Cars’ core global banking group.
Volvo Cars continues to lead by example in integrating financial strategies with environmental goals, reaffirming its position as a pioneer in sustainable mobility solutions.
