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The introduction of sustainability performance-linked financing highlights RHI Magnesita’s commitment to continuously progress with the company’s sustainability strategy. Going forward, RHI Magnesita’s core loan facilities will be adjusted based on its EcoVadis rating. In July, RHI Magnesita was awarded a ‘Gold’ rating.
RHI Magnesita has linked the interest rates of its USD 200 million Term Loan and EUR 600 million Revolving Credit Facility (RCF) to the company’s EcoVadis ESG ratings (Environmental, Social and Governance). This represents an important step in the integration of sustainability across RHI Magnesita’s business.
“The sustainability performance of companies is becoming increasingly important for all stakeholders, including our customers, communities, investors and banking partners,” said Felix Warmuth, Head of Treasury at RHI Magnesita. “We believe that linking our ESG performance to our financing strategy emphasizes our commitment to our sustainability goals and our holistic sustainability approach.” In July, RHI Magnesita was awarded with a ‘Gold’ rating by EcoVadis. This was an improvement from the ‘Silver’ rating awarded in 2020, reflecting enhanced performance and disclosure. Together with ING, one of Europe’s leading banks in the field of sustainability financing, RHI Magnesita has successfully implemented this amendment to its key financing facilities including all lenders in the banking syndicate.
EcoVadis is a leading independent agency for sustainability ratings, assessing more than 60,000 companies worldwide with regard to a range of non-financial areas including environment, labor & human rights, ethics and sustainable procurement. Each company is rated on the material issues in connection to the company’s size, location and industry and is ranked on a scale of 0 to 100 under the following categories: Platinum, Gold, Silver, and Bronze.