Nokia announced the recent signing of a EUR 1.5 billion five-year multicurrency revolving credit facility (RCF) with sustainability targets.

The RCF has two one-year extension options and continues with a sustainability pricing mechanism linking the margin of the RCF to two key sustainability targets. The margin of the RCF will increase or decrease depending on Nokia’s progress towards reaching these targets. The new RCF will replace the EUR 1,412 million RCF agreement dated June 18, 2019.

Nokia’s key RCF sustainability targets include annual target observation periods and dates with RCF pricing adjustments impacting the following year, including a reduction of absolute Scope 1 and 2 GHG emissions and reduction of absolute Scope 3 GHG emissions.

The technology company’s financing strategy is linked to its sustainability strategy, and the RCF builds on previous sustainable finance activities. These activities include linking the margin of Nokia’s revolving credit facility to Nokia’s sustainability targets in 2019, Nokia’s first sustainability-linked guarantee facility in 2022, and the launch of Nokia’s sustainable finance framework in 2023.

“We’re delighted with the strong support and commitment from our key banking partners in this refinancing transaction that connects our financing strategy with our sustainability priorities,” said Marco Wirén, Chief Financial Officer, Nokia, in a statement.

Nokia is committed to reducing its Scope 1, 2 and 3 GHG emissions and has a net-zero target of 2040 approved by the Science Based Targets initiative (SBTi).