LANXESS : signs “sustainable” revolving credit facility of EUR 1 billion

• Interest rate terms linked to fulfillment of ESG criteria
• Reduction of greenhouse gases and increase in the proportion of women in management as parameters
• Further establishment of climate targets in the company
• Consortium of 12 banks

Cologne - LANXESS takes an innovative approach to Group financing and has linked its main revolving credit facility to the fulfillment of ESG (Environment, Social and Governance) criteria. The specialty chemicals company has now agreed a new syndicated credit facility with 12 banks, whose interest conditions depend, among other things, on the successful reduction of its greenhouse gas emissions (Scope 1) and the increase in the proportion of women on the top three management levels.

With a volume of EUR 1 billion, it replaces the syndicated loan of EUR 1.25 billion expiring in May 2023. The 'sustainable' revolving credit facility has an initial term of five years as well as two options for one-year extensions.

'We are convinced that sustainable criteria are also becoming increasingly important for the capital markets. We have therefore developed this innovative financing concept together with our banking partners. With the 'sustainable' revolving credit facility, we are also underlining our commitment to achieving our ambitious climate targets,' said Michael Pontzen, LANXESS' Chief Financial Officer.

In November, LANXESS announced that it will go climate neutral and eliminate its greenhouse gas emissions of currently around 3.2 million metric tons of CO₂ by 2040.

The revolving credit facility is intended to secure the company's liquidity in the long term and thus to provide financial backup for growth. 'We have used the good capital market environment and our solid investment grade rating to secure LANXESS' long-term financing on attractive terms,' said Pontzen.

The transaction was coordinated by Deutsche Bank and UniCredit.

Forward-Looking Statements
This company release contains certain forward-looking statements, including assumptions, opinions, expectations and views of the company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or performance of LANXESS AG to differ materially from the estimations expressed or implied herein. LANXESS AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecast developments. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, any information, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and accordingly, no representative of LANXESS AG or any of its affiliated companies or any of such person's officers, directors or employees accept any liability whatsoever arising directly or indirectly from the use of this document.

LANXESS is a leading specialty chemicals company with sales of EUR 7.2 billion in 2018. The company currently has about 15,500 employees in 33 countries and is represented at 60 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of chemical intermediates, additives, specialty chemicals and plastics. LANXESS is listed in the leading sustainability indices Dow Jones Sustainability Index (DJSI World and Europe) and FTSE4Good.