Motus Holdings Limited, a South African automotive company, announced that it has added a Sustainability Linked Loan (formerly known as a Positive Incentive Loan) feature to its existing US$ 30 million loan with BNP Paribas to complement its strengthening commitment to environmental awareness and sustainability. The Sustainability Linked Loan (SLL) mechanism – in which the cost of credit is linked to a reduction in Motus’ water and fuel consumption, will help the company to further its environmental commitments towards the low carbon energy transition.
The unique SLL structure links preferential interest rates with sustainability targets in an effort to support and incentivise Motus in driving its sustainability strategy whilst also meeting its financing needs. This alignment ultimately reflects the vision of placing sustainability at the core of its business strategy.
Osman Arbee, Motus CEO commented: “We are pleased to collaborate with BNP Paribas on this innovative facility to integrate our sustainability values and financing strategy. Our commitment to the sustainability targets aligns with our broader ambition of reducing our environmental footprint to ensure a greener and more sustainable South Africa.”
Vikas Khandelwal, CEO BNP Paribas South Africa Group commented: “Given the environmental challenges facing our region around water scarcity and other key climate issues, BNP Paribas recognises the importance of supporting South Africa’s low-carbon energy transition. This transaction reflects the steps that corporates such as Motus and banks can take together to find tangible solutions to the challenges of climate change.
About BNP Paribas:
BNP Paribas has been operating in the MEA region for over 40 years, where it is active in the fields of Corporate & Institutional Banking and International Financial Services. The Bank has a presence in five of the Gulf countries: Bahrain, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates. The Bank also has a presence in South Africa via a Full Commercial Branch, which acts as a regional hub for operations in Southern Africa, and in Morocco through BNP Paribas Regional Investment Company (BRIC), which acts as a hub for wider Africa. BNP Paribas Johannesburg branch is an authorized Financial Services Provider
Through its presence on the ground and with the expertise of a team of talented and diverse individuals, the bank’s MEA network enjoys a leading position in many areas including: fixed income, debt capital markets, cash management, trade finance and advisory services.
BNP Paribas continue to be internationally recognised for its leadership in the field of Sustainability. In 2018 the bank was named as the “World’s Best Bank for Sustainable Finance” by Euromoney, a leading publication in the international finance field. In the same year BNP Paribas was also awarded “Green Bond Lead Manager of the Year for Corporates”. These accolades build on the previous recognition of BNP Paribas by ‘The Banker’ magazine who named the bank the “Most Innovative Bank for Climate Change and Sustainability” in both 2016 & 2017.
Press contact: Lerato Songelwa – Lerato.Songelwa@hkstrategies.co.za
MOTUS is a diversified (non-manufacturing) business in the automotive sector with unrivalled scale and scope in South Africa, and a selected international presence — primarily in the UK and Australia. MOTUS’ unique business model is fully integrated across the automotive value chain through its four key business segments: Import and Distribution; Retail and Rental; Motor-related Financial Services; and Aftermarket Parts.
Press contact: Nicole Varty – firstname.lastname@example.org