MAPFRE converts its 1 billion euro syndicated credit line into a sustainable loan
MAPFRE has converted its 1 billion euro syndicated credit line (which matures in December 2021) into a sustainable loan, thereby becoming the first insurance company in the world to execute a transaction of this nature for general corporate requirements, while strengthening its commitment to sustainability and corporate social responsibility.
This transaction makes MAPFRE the first insurance company in the world to structure a loan in this manner
The most notable feature of this transaction is that the interest rate applied takes into consideration not only MAPFRE’s credit rating but also the performance of the company’s sustainability parameters. As a result, the interest rate will be lowered if improvements are detected in sustainability evaluations, and to this end, an independent consultant, in this case Vigeo Eiris, will publish an annual report that analyzes MAPFRE’s performance in environmental, social and governance issues.
This novation reduces the cost of the current loan, which has been extended to mature in 2023, with the option of two subsequent extensions for one year each.
The loan was negotiated with a group of banks, with Santander, BBVA, Bankinter, Sabadell and Bankia acting as bookrunners, Santander as agent and BBVA as sustainability agent.
MAPFRE reaffirms its commitment to sustainability in all areas of the organization and strengthens its position as a company that is committed to social responsibility, the environment and society in general, as well as to reducing its financing expenses and extending financing maturity, while ensuring more advantageous conditions, taking into consideration the performance of the financial markets.