ICL hereby announces, that on April 20, 2023, it entered into a Sustainability-Linked Revolving Credit Facility Agreement made between its subsidiary ICL Finance B.V., as borrower, and a consortium of twelve (12) international banks (the "Lenders") for $1,550 million, guaranteed by ICL (the "Sustainability-Linked RCF" or the “New RCF”).
The Sustainability-Linked RCF is for a term of five years, with options of the Lenders to extend it by two periods of one-year each, replacing the previous Revolving Credit Facility that was entered into in 2015, as amended and extended in 2018, due to expire in 2025 (the “Previous RCF”). For details regarding the Previous RCF, see company’s immediate report dated March 24, 2015 (Ref No: 2015-02-059557). The pricing structure of the New RCF is not materially changed from the Previous RCF, adapted to a SOFR/EURIBOR based pricing mechanism on the loan amount under the New RCF.
The Sustainability-Linked RCF further includes various customary undertakings and representations, including, among other things, a cross-default mechanism, a negative pledge and financial covenants, similar to all of ICL loans. For details regarding ICL’s credit from banks, and its underlying financial covenants, see Note 13.F. – Credit from Banks, of the Company’s Financial Statements for the year ended December 31, 2022 (Ref No: 2023-02-022020).
The Sustainability-Linked RCF follows ICL’s debut Sustainability-Linked Term Loan from September 2021 (Ref No: 2021-02-144234), in line with ICL’s strategic commitment to sustainability. The RCF includes three Key Performance Indicators (“KPIs”), which have been designed to align with ICL’s sustainability goals, and each will be assessed regularly, during the term of the RCF, by third-party verification of performance.
The ESG KPIs include a reduction in Absolute Scope 1 & 2 GHG Emissions, an increase in the percentage of female in Senior ICL Management and an increase in the number of valid TfS (Together for Sustainability initiative) Scorecards obtained for ICL Group suppliers.
Name of the authorized signatory on the report and name of authorized electronic reporter: Aya Landman, Adv.
Position: VP, Chief Compliance Officer & Corporate Secretary
Signature Date: April 24, 2023
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