Telecommunications and networking technology company Nokia announced that it has signed a new €1.5 billion multicurrency revolving credit facility, with pricing on the new debt tied to its performance towards its Scope 1, 2 and 3 greenhouse gas emissions goals.
The new credit facility marks the latest in a series of sustainability-linked financing instruments for Nokia, including a credit facility linked to the company’s sustainability targets in 2019, and its first sustainability-linked guarantee facility in 2022.
In 2024, Nokia announced a commitment to achieve net zero greenhouse gas (GHG) emissions in its own operations and across the value chain, by 2040, bringing forward its initial 2050 net zero target by 10 years. Nokia’s 2040 net zero target has been approved by the Science Based Targets initiative (SBTi).
According to Nokia’s sustainable finance framework, the company’s sustainability-linked financing utilizes Key Performance Indicators (KPIs) based on the company’s interim climate goal to reduce Scope 1, 2, and 3 emissions by 50% by 2030, on a 2019 basis.
Under the terms of the new facility, the debt’s margins will increase or decrease depending on Nokia’s progress towards reaching its Scope 1 and 2 and its Scope 3 targets, based on annual target observation, with pricing to be adjusted in the following year.
Subho Mukherjee, Vice President of Sustainability at Nokia, said:
“Nokia’s sustainability approach is centered 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.”
Marco Wirén, Chief Financial Officer at Nokia, added:
“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.”
