FirstGroup plc announced that it has signed a new £300 million sustainability-linked Revolving Credit Facility (RCF) with a group of its relationship banks. The RCF has an initial maturity of four years, with the option to extend by a further year subject to bank consent. The covenants have been structured to reflect the future shape of the Group and to give substantial headroom against them. The initial interest rate will be the Bank of England's Sterling Overnight Index Average (SONIA) interest rate plus 1%, and will thereafter vary according to two measures. The first of these is the Group’s leverage; and the second is its performance against two sustainability KPIs, being the level of Scope 1, 2 and 3 emissions per £m of revenue from its First Bus and First Rail operations, and the relative growth of its zero-emission bus fleet in the UK. The new RCF replaces all the Group’s former committed syndicated and bilateral banking facilities, which have recently been repaid and cancelled. The Group has recently also repaid the UK Government's Covid Corporate Financing Facility (‘CCFF’) commercial paper as well as all of its Private Placement debt, and will shortly give notice to the holders of its £325 million 5.25% bonds due November 2022 that it will exercise its right to repay them early. The Group’s £200 million 6.875% bonds due September 2024 are not affected and remain outstanding.