Bridgestone Americas Underscores Commitment to Sustainability with New $1.1 Billion Credit Facility

Bridgestone Americas, Inc., has announced the issue of a $1.1 billion sustainability-linked credit facility, one of the first of its kind in the U.S. tire industry. 

The credit instrument underscores the commitment of Bridgestone to sustainable business practices and complements its 2050 Vision to become a sustainable solutions company that provides social and customer value. 

“Sustainability is at the center of our company’s mission to realize innovations that improve the way people move, live, work and play, “said Paolo Ferrari, president and CEO of Bridgestone Americas, Inc. “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.”  

Consistent with that spirit of innovation, Bridgestone partnered with SMBC, a leading global bank and pioneer in sustainable and positive impact loans, to execute this inaugural syndicated sustainability-linked credit facility. The financing features a sustainability-linked pricing adjustment mechanism that adjusts interest rate based on the Environmental, Social and Governance (ESG) 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. 

“This committed credit facility reinforces our commitment to sustainability by linking the rate structure of the facility to independent assessments of our continued efforts to advance Bridgestone’s sustainability practices,” said Jose Anes, vice president and corporate treasurer of Bridgestone Americas.

This transaction reinforces proven sustainability commitments of Bridgestone, including its 2030 Environmental Milestones, Sustainable Procurement Practices, and recently announced Sustainability Business Framework

The Company’s sustainability achievements have also been recognized by indexes and rankings such as FTSE4Good, STOXX, and CDP, where Bridgestone has earned an “A” for Climate Disclosure, among others.

“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,” said Hiro Hyakutome, CEO and Head of SMBC Americas Division.  “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.”  

For more company news and information on sustainability initiatives, visit BridgestoneAmericas.com

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