Amersfoort, the Netherlands, 4 June 2018 – Koninklijke VolkerWessels N.V. (“VolkerWessels”) has successfully amended and extended its € 600 million revolving credit facility (the “RCF”). VolkerWessels is the first company in the Dutch construction sector linking sustainability performance to its banking credit facility.
VolkerWessels has amended its € 600 million RCF by one year, extending the maturity of the facility to January 2023. The amended facility takes advantage of favourable market conditions and features two one-year extension options, potentially extending the tenor to January 2025. The credit margin of the RCF is based on the leverage ratio (net debt to EBITDA) and has been reduced to reflect VolkerWessels’ strong performance. The applicable credit margin is linked to the sustainability performance of VolkerWessels. All other terms have remained unchanged. The RCF can be used for general corporate and working capital purposes (including acquisitions, capital expenditure, dividend distributions and interest expenses).
For the first time in the Dutch construction industry, the applicable credit margin is linked to the sustainability performance of VolkerWessels. This shows VolkerWessels’ strong commitment to sustainability and incentivises VolkerWessels to deliver year-on-year improvements in five sustainability indicators: (i) injury frequency, (ii) social return, (iii) car fleet CO2 emissions, (iv) waste separation and (v) proportion of newly built zero-energy bill homes.
These commitments have been transposed into annual objectives that will be monitored during the lifetime of the facility. Depending on the number of sustainability indicators achieved, a margin discount or increase will be applicable.
Jan van Rooijen, CFO
“We are pleased to announce the amendment and extension of our revolving credit facility with our core banks, which improves our debt maturity profile. We appreciate the support of our key relationship banks and the confidence that this commitment reflects in our business model.
We are proud that we are one of the pioneers in the field of sustainable finance. Linking the interest rate to our sustainability performance improvement
demonstrates VolkerWessels’ commitment to continuously improve that performance.”
The RCF is provided by a syndicate of seven Dutch and international banks, being ABN AMRO, BNP Paribas, Crédit Agricole, HSBC, ING, MUFG and Rabobank. Rabobank has been mandated as Documentation Agent and Sustainability Coordinator for this transaction, as part of the bank syndicate, with ING remaining Facility Agent.