Dutch telco KPN has agreed to a €1 billion ($1.176bn) sustainability-linked loan. The loan is linked with some sustainability performance in the next few years. The credit facility will be linked to three sustainability objectives. The first one is reducing its energy consumption, the second, reducing its CO2 emissions, and finally, fiber roll out in the Netherlands through fiber optics roll-out.
The credit facility is also a refinancing of an existing one from 2016. However, the new one will see 12 banks take part in the financing, have a five-year maturity period, and an option of two one-year extensions. CEO of KPN, Chris Figee, said the financing agreement is vital for the Company as it brings financial flexibility that ensures KPN remains in a solid, liquid position. He also added that linking the financial structure with sustainability goals shows that KPN is one of the most sustainable telcos worldwide.
KPN has been using 100% renewable energy since 2011; it has also been climate neutral since 2015. Earlier in the year, the Company also announced that it is targeting net-zero emissions in the chain before 2040.
