Bridgestone Issues Sustainability-Linked Credit Facility
Bridgestone Americas Inc. has issued a $1.1 billion "sustainability-linked" credit facility, which the company calls one of the first of its kind in the United States tire industry.
According to Bridgestone officials, the credit instrument "underscores the commitment of Bridgestone to sustainable business practices and complements its 2050 Vision to become a sustainable solutions company that provides social and customer value."
“Sustainability is at the center of our company’s mission to realize innovations that improve the way people move, live, work and play,” says Paolo Ferrari, president and CEO of Bridgestone Americas. “We will continue to take bold steps to fulfill our commitment to our customers and to society as we endeavor to be a world-leading sustainable solutions company.”
Bridgestone partnered with SMBC, a leading bank and pioneer in "sustainable and positive-impact loans," to execute the credit facility.
"The financing features a sustainability-linked pricing adjustment mechanism that adjusts interest rate based on the Environmental, Social and Governance (ESG) Risk Rating of Bridgestone, as determined by Sustainalytics, as well as by the ESG rating of FTSE Russell, both leading independent providers of environmental, social and governance ratings.
"As Bridgestone sustainability ratings improve, borrowing costs will be reduced. The sustainability mechanism was structured in accordance with the sustainability-linked loan principles promulgated by the syndicated loan market industry associations.
“This committed credit facility reinforces our commitment to sustainability by linking the rate structure of the facility to independent assessments of our continued efforts to advance Bridgestone’s sustainability practices,” says Jose Anes, vice president and corporate treasurer of Bridgestone Americas.
"This transaction reinforces proven sustainability commitments of Bridgestone, including its 2030 Environmental Milestones, Sustainable Procurement Practices, and recently announced Sustainability Business Framework," add Bridgestone officials.