Oil major Royal Dutch Shell PLC signed a $10 billion revolving credit facility provided by a syndicate of 25 banks and linked to the new secured overnight financing rate, according to a Dec. 13 news release.

The facility, which replaces an existing $8.84 billion revolver credit, consists of a five-year, $8 billion facility and a one-year, $2 billion facility. Each facility includes two one-year extension options at the discretion of each lender. Under the deal, the London interbank offered rate will be replaced by the secured overnight financing rate as early as the first anniversary of the facility's signing, provided the bank market is prepared for the secured overnight financing rate as an underlying rate.

The interest and fees paid on the revolver credit will be linked to Shell's progress toward reaching its short-term, net carbon footprint intensity target.

In early 2018, Shell said it would reduce the carbon footprint of the energy products it sells by 50% by 2050 and by about 20% by 2035. In late 2018, the Anglo-Dutch oil major said it would set short-term targets to cut carbon emissions, with those levels tied to executive pay. The company also set a three-year target to reduce its carbon footprint by 2% to 3% by 2021 as compared to 2016.

Bank of America and Barclays Bank acted as joint coordinators for the facility.

The facility also had the participation of ANZ, Bank of China, Banco Santander, BNP Paribas, Citibank, Credit Agricole Corporate and Investment Bank, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, Industrial and Commercial Bank of China, J.P. Morgan, Lloyds Bank, Mizuho Bank, Morgan Stanley, Natixis, Royal Bank of Canada, Sumitomo Mitsui Banking Corp., Société Générale, Standard Chartered Bank, TD Securities, UBS and Wells Fargo.