The deal, with options to extend it by one year, twice, replaced the previous €1.4 million RCF from 18 June 2019, allowing the margin to go up or down depending on how well these goals are met.
The main sustainability targets linked to the RCF are reviewed yearly and affect the next year’s pricing, including cutting Scope 1 and 2 greenhouse gas emissions and cutting absolute Scope 3 greenhouse gas emissions.
Additionally, the move helps the telecoms giant to connect its financing with its sustainability efforts.
This comes as Nokia is committed to lowering its Scope 1, 2 and 3 greenhouse gas emissions and aims to reach Net-Zero by 2040, with the goal being approved by the Science Based Targets initiative (SBTi).
Nokia chief financial officer, Marco Wirén, said: “We’re delighted with the strong support and commitment from our key banking partners in this refinancing transaction that connects our financing strategy with our sustainability priorities.”
Nokia VP of sustainability, Subho Mukherjee, added: “Nokia’s sustainability approach is centred on protecting and creating value for our company, and our stakeholders. We are committed to our climate transition plan, which is built to deliver efficiency and innovations in our value chain.
“Continuing to link the pricing of the revolving credit facility to our science-based climate goals is a strong step forward demonstrating our commitment to our sustainability targets.”
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