Accordingly, this deal is one of the world’s first credit facilities linked to the new Secured Overnight Financing Rate (SOFR), while waiting for the cessation of the London Interbank Offered Rate.
The $10 billion unsecured revolving credit facility consists of a five-year, $8 billion revolving credit facility, and a one-year, $2 billion facility. Each facility includes two one-year extension options at the discretion of each lender.
In a first for Shell, the fees and interest paid on the project will be connected to the oil major's progress towards reaching its short-term Net Carbon Footprint intensity target.
In light of the deal, Shell issued a statement commenting that
This is an innovative deal which also demonstrates Shell’s broad-based commitment to reducing the Net Carbon Footprint of the energy products we sell. We appreciate the strong support and commitment from our relationship banks.
Overall, as it is already known, Shell aims to recline its carbon footprint of the energy products it sells by around 50% by 2050 and by 20% by 2035 in line with meeting the aims of the Paris Agreement. Shell has also set a three-year target to reduce its Net Carbon Footprint by 2% to 3% by 2021 in comparison to 2016.