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Lassila & Tikanoja signs a revolving credit facility tied to sustainability targets

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Lassila & Tikanoja plc
Investor news
28 March 2022 at 6:00 p.m.

Lassila & Tikanoja signs a revolving credit facility tied to sustainability targets

On 25 March 2022, Lassila & Tikanoja plc signed a revolving credit facility of EUR 40 million tied to sustainability targets. The revolving credit facility matures in the first quarter of 2025, and the agreement includes a one-year extension option. The agreement was signed with Danske Bank.

The margin on the revolving credit facility takes into account L&T's progress towards achieving its three sustainability targets. The targets are:

  • increasing the carbon handprint, meaning the emission savings generated by L&T’s operations in relation to net sales
  • the scientific emission reduction target, according to which L&T’s objective is to halve the carbon emissions from its own operations (scopes 1 and 2) per kilometre driven by 2030, compared to 2018
  • improving occupational safety, as measured by the total recordable incident frequency (TRIF)

“L&T has a strategic target of achieving significant emission savings in society, and it's great that our revolving credit facility is also tied to this target. L&T reports on the climate emission savings generated for customers on a quarterly basis. We have been taking action to reduce our own emissions for years by, for instance, modernising our fleet, making smart propulsion energy and fuel choices, adopting economical driving methods and optimising route efficiency. As we operate in a labour-intensive sector, promoting occupational safety is an important focal point for us,” says Valtteri Palin, CFO of Lassila & Tikanoja.

The revolving credit facility also has two financial covenants: the equity ratio and the ratio of net debt to EBITDA. The revolving credit facility is unsecured.

At the same time, Lassila & Tikanoja terminated its current EUR 30 million revolving credit facility, which would have matured in the second quarter of 2023. At present, the company’s revolving credit facility is unused.

Additional information:

Valtteri Palin, CFO, tel. +358 40 734 7749

Lassila & Tikanoja is a service company that is putting the circular economy into practice. Together with our customers, we keep materials and properties in productive use for as long as possible and we enhance the use of raw materials and energy. This is to create more value with the circular economy for our customers, personnel and society in a broader sense. Achieving this also means growth in value for our shareholders. Our objective is to continuously grow our actions’ carbon handprint, our positive effect on the climate. We assume our social responsibility by, for example, looking after the work ability of our personnel and also offering jobs to those who are struggling to find employment. L&T operates in Finland, Sweden and Russia. L&T employs 8,100 people. In 2021, the company’s net sales amounted to EUR 812.5 million. L&T is listed on Nasdaq Helsinki.

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