Kingfisher has announced a new revolving credit facility conditioned to its ambitious sustainable and community-based targets.

The home and DIY giant, which owns UK fascias B&Q and Screwfix alongside Brico Depot and Castorama in mainland Europe, has entered into a £550m three-year revolving credit agreement with a group of its relationship banks. 

Under the terms of the deal, which will last for three years but has the potential for two one-year extensions, Kingfisher will be given a lower interest rate if it achieves specific targets which are aligned with its responsible business plan.

The three key areas Kingfisher are seeking to address are: to tackle climate change by reducing carbon emissions across the business and its scope 1 and 2 supply chain, delivering 1.5°C science-based carbon reduction targets by FY 2025/26; becoming forest positive by FY 2025/26 by creating more forests than it uses, including reaching 100% sustainable wood and paper for all its products by the same year; and helping to fight bad housing by aiding 2 million people with the greatest housing needs by the same year.

The new credit facility replaces two old ones which expire in March 2022 and August 2023 respectively.

Kingfisher group chief financial officer Bernard Bot said: “This revolving credit facility shows our commitment to integrate our responsible business principles into all aspects of our business. 

Our responsible business plan is an integral part of our “Powered by Kingfisher” strategy and this facility links our ambitious sustainability and community targets with our financing activities. 

“We are making great progress with our climate change and community programmes and I look forward to working with all our stakeholders on realising our commitments.”