CMS Energy and its primary subsidiary, Consumers Energy, completed the first syndicated sustainability-linked revolving credit facilities for a U.S. borrower. The aggregate $1.4 billion in new credit facilities will allow CMS to reduce its interest rate by meeting targets related to environmental sustainability, specifically renewable energy generation.
According to a related 8-K filing, Barclays served as administrative agent for the $550 million revolving credit facility, with JPMorgan as agent on the $850 million revolving credit facility. Barclays and J.P. Morgan were joined by MUFG, Mizuho and Bank of America Merrill Lynch as joint lead arrangers for the facilities. Barclays also served as sustainability structuring agent for both facilities.
“We believe a company can serve more than the bottom line. We are committed to a triple bottom line that’s measured by our actions to support people, planet and prosperity,” said Patti Poppe, CMS Energy’s president and CEO. “We are excited to be a trendsetter in the United States entering an innovative credit facility, where sustainability and financial results go hand-in-hand.”
CMS Energy’s clean energy goals include:
- Zero coal used to generate electricity by 2040
- Reducing carbon emissions by 80 percent by 2040
- Meeting a renewable energy goal of more than 40 percent by 2040
CMS Energy is a Michigan-based company that has an electric and natural gas utility.