Motus signs £120 million sustainability linked loan

Back row:
Vikas Khandelwal (BNP Paribas) , Dr Christian Nägele (SMBC), Osman Arbee (CEO, Motus) , Amol Prabhu (Barclays) , Ockert Janse van Rensburg (CFO, Motus) , Collin Grieve (Afrasia)
Front row:
Ryohei Oikawa (Mizuho) , Achmat Adams (SMBC) , Lisa Spain-Fine(BNP Paribas) , Adhila Khan (BNP Paribas) , Berenice Francis (Motus) , Shakira Pillay (Motus) , Russell Mumford (Motus)

Motus signs £120 million sustainability linked loan

12 February 2020

Johannesburg, Wednesday 12th February 2020: Motus Holdings Limited (‘Motus’), today announced that it has secured £120 million financing in the form of a Sustainable Linked Loan. Co-ordinated by BNP Paribas and Sumitomo Mitsui Banking Corporation (SMBC), who also acted as Bookrunners, this innovative financing also involved, JP Morgan, Mizuho, Barclays, AfrAsia, and Citi Bank. BNP Paribas also acted as the Sustainable Coordinator and SMBC as the Documentation Agent.

The £120 million loan mechanism will directly align the financing costs to the Sustainable targets set by the company. Considering that the automotive sector is especially sensitive towards the shift to Sustainable practices and the pressures to reduce carbon emissions, innovative loan structures like this help to soften the bottom line impact during the transformation to long-term Sustainability.

In particular, the 3-year facility links preferential interest rates with Sustainability targets aimed at reducing fuel and water consumption. The pre-agreed KPI’s place Sustainability at the forefront of the agreement, and reflect Motus’ strong commitment to environmental awareness and Sustainability.

Following global trends in Sustainable Finance and the wide adoption of the UN’s Sustainable Development Goals, Motus is proud to be a leader in sustainability in South Africa exampled by the execution of this unique facility which builds on a previous Sustainable Linked Loan executed with BNP Paribas.

Osman Arbee, Motus CEO commented “We are pleased to be able to work with banks who have provided this innovative facility that allows Motus to leverage its efforts in ESG (Environmental, Social and Governance). With a solid track record of sustainable value creation with the help of partners such as BNP Paribas and SMBC, we remain mindful of the economic, environmental and social consequences of our activities and actively strive to uphold our commitment to all stakeholders”.

Latest news