Innovation

Bridgestone Americas unveils $1.1 billion sustainably linked credit facility

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February 5, 2021

Bridgestone Americas Inc. a wholly owned subsidiary of Bridgestone Corp., announced the opening of its $1.1 billion sustainability-linked credit facility, one of the first of its kind in the U.S. tire industry, according to a press release.

Bridgestone partnered with SMBC, a leading global bank and pioneer in sustainable and positive impact loans, to execute the credit facility. The financing features a sustainability-linked pricing adjustment mechanism that adjusts interest rate based on the Environmental, Social and Governance Risk Rating of Bridgestone, as determined by Sustainalytics, as well as by the ESG rating of FTSE Russell, both leading independent providers of environmental, social and governance ratings.

As Bridgestone sustainability ratings improve, borrowing costs will be reduced. The sustainability mechanism was structured in accordance with the Sustainability-Linked Loan Principles promulgated by the syndicated loan market industry associations.

"SMBC is excited to help our partners at Bridgestone Americas further elevate their position and stake as a sustainability leader in the tire industry through this revolving credit facility," Hiro Hyakutome, CEO and Head of SMBC Americas Division said in the release. "Our deep and well-recognized expertise in green loans and sustainability-linked loans helps our global clients achieve their near- and longer-term ESG objectives. We look forward to continuing to help support Bridgestone's sustainability initiatives."

The facility emphasizes the company's commitment to sustainable business practices and complements its 2050 plan to become a sustainable solutions company.

"Sustainability is at the center of our company's mission to realize innovations that improve the way people move, live, work and play," Paolo Ferrari, president and CEO of Bridgestone Americas Inc. said in the release. "We will continue to take bold steps to fulfill our commitment to our customers and to society as we endeavor to be a world-leading sustainable solutions company."