BAM renews committed revolving credit facility, now linked to sustainability targets

Bunnik, the Netherlands, 1 December 2022 - Royal BAM Group nv has renewed its committed revolving credit facility (RCF) with a tenor until November 2026 linked to its sustainability targets. The new facility of €330 million has a tenor of four years with two one-year extension options and will be used for general corporate purposes. The facility is a refinancing of the existing and currently undrawn committed revolving credit facility, which was due to expire in March 2024.

Bunnik, the Netherlands, 1 December 2022 - Royal BAM Group nv has renewed its committed revolving credit facility (RCF) with a tenor until November 2026 linked to its sustainability targets. The new facility of €330 million has a tenor of four years with two one-year extension options and will be used for general corporate purposes. The facility is a refinancing of the existing and currently undrawn committed revolving credit facility, which was due to expire in March 2024.

The interest rate margin on the credit facility is linked to BAM's sustainability strategy. The KPIs relate to four of BAM's main ESG targets, including safety (incident frequency), CO2 emissions (scope 1 and 2), rating on the CDP Climate list, and waste intensity. Earlier in 2022, BAM announced accelerated targets for emissions reduction, committing the Group to 50 per cent reduction in carbon intensity in 2023 (compared to 2015) and 80 per cent reduction in carbon intensity in 2026 (compared to 2015).

The qualitative terms of the agreement are materially similar to the existing agreement with adjustments made in line with the current market conditions and Loan Market Association (LMA) standard.

The facility is backed by a syndicate of nine leading European banks. ING acted as coordinator. Bookrunning mandated lead arrangers are ING, Rabobank and ABN AMRO Bank, further supported by HSBC and Lloyds Bank as mandated lead arrangers and BNP Paribas, DZ Bank, UniCredit and KBC as lead arrangers. ING and Rabobank also acted as joint sustainability coordinators and ABN AMRO Bank acts as facility agent.

Frans den Houter, CFO of Royal BAM Group: 'I am pleased with the renewal of our committed revolving credit facility with several leading European banks. The long maturity and broad interest of reputable financiers confirm BAM's strength in the construction industry. With this arrangement BAM has sufficient financial flexibility to further execute our strategy Building a sustainable tomorrow. Adding ESG targets to the terms of the agreement reinforces BAM's aim to deliver innovative, sustainable solutions such as highly energy-efficient and energy-producing buildings which are increasingly in demand by clients.'

Further information:

• analysts: Michel Aupers, [email protected], +31 (0)30 659 89 88;
• press: Bert Ooms, [email protected], or Arno Pronk, [email protected], +31 (0)30 659 89 88.