(Alliance News) - Oil major Royal Dutch Shell PLC on Friday announced a new USD10 billion credit facility, the repayment of which will be linked the emissions cuts.
Shell's new facility, which has been agreed with a syndicate of 25 banks, replaces the existing revolving credit facility worth USD8.84 billion.
The company, London's largest by market capitalisation, said the facility is one of the world's first linked to the new Secured Overnight Financing Rate, or SOFR, rather than LIBOR.
It will also, in a first, have interest and fees linked to Shell's progress in reached its short-term net carbon footprint target. Shell has targeted reduce its footprint by 2% to 3% by 2021.
"We are delighted to support the transition to new benchmark interest rates with this, market leading, syndicated SOFR facility," said Russell O'Brien, treasurer at Shell.
"This is an innovative deal which also demonstrates Shell's broad-based commitment to reducing the net carbon footprint of the energy products we sell. We appreciate the strong support and commitment from our relationship banks."
Shell's 'A' shares were 0.5% lower on Friday in London at 2,172.50 pence each, with 'B' shares 0.6% lower at 2,153.50p.
By George Collard; georgecollard@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.