Keolis Group, a multi-national transportation company, announced that it will set up a €600 million loan to fund its commitment towards sustainable development (SDG) goals. The company signed a contract with 14 partner banks, which will be valid for a period of five years and will refinance credit lines.
The contract is in line with Keolis’ CSR strategy which calls for the gradual adoption of sustainable technology in its operations. It will also include a margin adjustment mechanism which will be linked to annual targets related to the environment, diversity and health & safety.
Christelle Villadary, Chief Financial and Legal Officer, Keolis Group, said that linking the €600 million syndicated loan to the company’s SDG goals ensures that its CSR objectives are always at the core of any financial strategy.
As part of the new financing scheme, a margin indexation mechanism based on achieving annual targets will be included. The mechanism will affect specific targets in:
The linking of the loan to specific CSR targets allows Keolis to deliver on its commitments and also align with its corporate purpose of making “smart and sustainable mobility solutions accessible to each and every one”.
Keolis has already incorporated many new technologies to its operations that allow for sustainable development. For example, it uses electric and alternative fuel to power many of its transport networks. It runs a bio methane bus service in Sweden and electric bus service in Rennes, Orleans and Los Angeles.
This new development will permit Keolis Group to integrate its CSR objectives and manage annual targets smartly. And it seems to be paying off. Christelle Villadary stated, “The success of this operation, illustrated by a high level of oversubscription, testifies to our banking partners’ confidence in the Keolis Group’s credit profile and in the quality of its development model.”