Borregaard ASA Enhances Credit Facilities for Sustainable Growth

Borregaard ASA Secures Extended Credit Facility

Borregaard ASA has successfully extended its bilateral multicurrency revolving credit facility agreement with DNB Bank ASA. This agreement allows Borregaard to access NOK 500 million for general corporate purposes, with a tenor extending over three years.

Sustainability-Linked Financial Framework

The unique aspect of this credit facility is that the margin is directly tied to the company’s sustainability performance. This approach aligns financial incentives with environmental goals, demonstrating Borregaard’s commitment to responsible business practices. The adjustments on the margin will be based on the company's accomplishments towards three specific sustainability targets.

Targets for Sustainability Improvement

Firstly, Borregaard is aiming to cut down its greenhouse gas emissions in accordance with its target for 2030. The company has set ambitious goals to significantly lower its carbon footprint, contributing positively to the global fight against climate change.

Focus on Safety and Environmental Protection

Secondly, Borregaard is concentrating on reducing the number of total recordable injuries within its operations. This focus highlights the company’s dedication to maintaining a safe working environment, which is crucial in today’s industrial landscape.

Protecting Local Ecosystems

Lastly, Borregaard is committed to ensuring that emissions of organic compounds to the Glomma River remain below regulated levels. By prioritizing local environmental health, the company showcases its respect for the surrounding ecosystem and commitment to sustainable practices.

Implications of the Extended Facility

The extended credit facility is more than a financial agreement; it represents Borregaard’s strategic positioning as a leader in sustainability within their industry. By aligning financial performance with environmental and social governance (ESG) targets, they are setting a strong precedent for other companies in the sector.

Corporate Responsibility and Growth

As companies worldwide increasingly commit to sustainable practices, Borregaard ASA stands out by incorporating these principles into its core business strategy. This alignment not only promotes corporate responsibility but also enhances long-term growth prospects as stakeholders increasingly favor companies focused on sustainability.

Future Growth Potential

With this credit facility in place, Borregaard is poised to drive further innovation and expand its operations while adhering to sustainability goals. The facility not only supports operational needs but also reinforces a narrative of responsible business to investors and customers alike.

How Stakeholders Benefit

Shareholders and stakeholders can feel confident knowing that their investments are tied to a company that prioritizes proactive measures towards sustainability. This confidence could be pivotal in attracting new investments and securing a competitive market edge.

Contact Information

For more information regarding this extension and Borregaard ASA’s corporate strategy, please reach out to the Director of Investor Relations, Knut-Harald Bakke, at +47 905 79 164.

Frequently Asked Questions

What is the amount of the extended credit facility?

The credit facility amounts to NOK 500 million.

Who is Borregaard's banking partner in this agreement?

The credit facility agreement is with DNB Bank ASA.

What are the sustainability targets linked to the credit facility?

The targets include greenhouse gas emissions reduction, injury reduction, and organic emissions control to the Glomma River.

How long is the tenor of the facility?

The tenor of the credit facility is three years.

Who can I contact for more information about Borregaard ASA?

You can contact Knut-Harald Bakke, the Director of Investor Relations, at +47 905 79 164 for more details.

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