Motus Holdings Limited, a South African automotive company, announced that it has added a Positive Incentive Loan (PIL) feature to its existing US$ 30 million loan with BNP Paribas to complement its strengthening commitment to environmental awareness and sustainability. The Positive Incentive Loan 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 PIL 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.