Mapfre SA said it converted its €1 billion syndicated credit line maturing in December 2021 into a so-called sustainable loan.
The interest rate applied as part of the transaction takes into consideration Mapfre's credit rating but also its performance against sustainability parameters, the Spanish insurer said. The interest rate will be lowered if improvements are detected in sustainability evaluations.
An independent consultant, research firm Vigeo Eiris, will publish an annual report that will analyze Mapfre's performance in environmental, social and governance issues.
Mapfre said the transaction reduces the cost of the loan, which has been extended to mature in 2023 with the option of two subsequent extensions for one year each.
Banco Santander, BBVA, Bankinter, Banco de Sabadell and Bankia acted as book runners on the deal, while Banco Santander also acted as agent and BBVA as sustainability agent.