BAKU, Azerbaijan, Dec.13
By Leman Zeynalova – Trend:
Royal Dutch Shell plc has signed a $10 billion revolving credit facility, replacing its $8.84 billion revolving credit facility and is provided by a syndicate of 25 banks, Trend reports citing the company.
A revolving credit facility is a committed bank loan facility which allows a company to borrow funds at short notice if required.
In anticipation of the cessation of the London Interbank Offered Rate (LIBOR), this is one of the world’s first credit facilities linked to the new Secured Overnight Financing Rate (SOFR). Also, in a first for Shell, the interest and fees paid on the facility will be linked to Shell’s progress towards reaching its short-term Net Carbon Footprint intensity target, as published in its Sustainability Report.
Shell has set an ambition to reduce the Net Carbon Footprint of the energy products it sells by around 50 percent by 2050 and by 20 percent by 2035 in step with society as it moves towards meeting the aims of the Paris Agreement. Shell has also set a three-year target to reduce its Net Carbon Footprint by 2 percent to 3 percent by 2021 as compared to 2016.
The $10 billion unsecured revolving credit facility consists of a five-year, $8 billion revolving credit facility, and a one-year, $2 billion facility. Each facility includes two one-year extension options at the discretion of each lender.
Bank of America and Barclays Bank acted as joint co-ordinators for the facility.
Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects.
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