Friday 13 December 2019

Shell links $10bn revolving credit facility to carbon footprint target

Shell links $10bn revolving credit facility to carbon footprint target

Shell has signed a $10 billion (£7.5bn) revolving credit facility where the interest and fees will be linked to its progress towards reaching its carbon footprint target.

The oil and gas giant has set a three-year goal to reduce its net carbon footprint by 2% to3% by 2021 compared to 2016.

It has also set an ambition to reduce the net carbon footprint of the energy products it sells by around 20% by 2035 and 50% by 2050 as it moves towards meeting the aims of the Paris climate change agreement.

A revolving credit facility is a committed bank loan facility which allows a company to borrow funds at short notice if required.

The new facility replaces Shell’s existing $8.84 billion (£6.6bn) revolving credit facility and is provided by a syndicate of 25 banks.

Russell O’Brien, Group Treasurer at Shell said: “We are delighted to support the transition to new benchmark interest rates with this, market leading, syndicated SOFR [Secured Overnight Financing Rate] facility. This is an innovative deal which also demonstrates Shell’s broad-based commitment to reducing the net carbon footprint of the energy products we sell. We appreciate the strong support and commitment from our relationship banks.”

Written by

Bruna Pinhoni

Trending Articles