Real Economy News in Real Time
R/€ = 20.11 Change: 0.04
R/$ = 18.57 Change: 0.10
Au 1660.58 $/oz Change: 29.53
Pt 741.50 $/oz Change: 5.08
 
 
Real Economy News in Real Time
R/€ = 20.11 Change: 0.04
R/$ = 18.57 Change: 0.10
Au 1660.58 $/oz Change: 29.53
Pt 741.50 $/oz Change: 5.08
 
 
BACK
Advertise on this page? Tap Here to Learn More

Motus secures £120m loan to achieve sustainability goals

13th February 2020 BY: Simone Liedtke
Writer

JSE-listed automotive holding company Motus has secured £120-million in financing in the form of a Sustainable Linked Loan.

The financing was coordinated by BNP Paribas and Sumitomo Mitsui Banking Corporation (SMBC), which also acted as bookrunners. JP Morgan, Mizuho, Barclays, AfrAsia and Citi Bank were also involved.

Advertisement

The £120-million loan mechanism will directly align the financing costs to the sustainable targets set by Motus. Considering that the automotive sector is especially sensitive to the shift to sustainable practices and the pressures to reduce carbon emissions, Motus on Thursday said loan structures like this help to soften the bottom line impact during the transformation to long-term sustainability.

The three-year facility links preferential interest rates with sustainability targets aimed at reducing fuel and water consumption. The pre-agreed key performance indicators place sustainability at the forefront of the agreement and reflect Motus’ commitment to environmental awareness and sustainability.

Advertisement

The financing follows global trends in sustainable finance and the wide adoption of the United Nations’ Sustainable Development Goals (SDGs).

Commenting on the facility, Motus CEO Osman Arbee said the company was pleased to be working with banks that, through the facility, allow the company to leverage its efforts in environmental, social and governance (ESG).

“With a solid record of sustainable value creation with the help of partners such as BNP Paribas and SMBC, we remain mindful of the ESG consequences of our activities and actively strive to uphold our commitment to all stakeholders,” he said.

BNP Paribas Group South Africa CEO Vikas Khandelwal, meanwhile, said that incentivising corporates to achieve their sustainability targets was one way banks could work with their corporate clients to achieve the SDGs. 

EDITED BY: Chanel de Bruyn Creamer Media Senior Deputy Editor Online
EMAIL THIS ARTICLE SAVE THIS ARTICLE ARTICLE ENQUIRY
Advertisement
 
 
Prev Next