BNP Paribas has closed a sustainability-linked syndicated credit facility with WSP Global.
BNP Paribas served as sole sustainability coordinator, working with WSP to integrate the sustainability targets into its credit facility.
WSP is the first professional services firm in the Americas to secure sustainability-linked terms for its syndicated credit facility. WSP signed an amendment to its existing credit facility to include financing terms that reduce or increase the borrowing costs on the lending facility as sustainability targets are met or missed.
The amendment introduces an annual pricing adjustment based on the achievement of ambitious targets related to sustainability. With sustainability core to its business strategy, this step reflects WSP’s goal to create compelling business value through advancing its vision to have a long-lasting positive impact on society.
“We are proud to be challenging the status quo by formally linking sustainability and financing. By doing so, we are further strengthening our commitment to deliver on the sustainability ambitions outlined in our 2019-2021 Global Strategic Plan. Moreover, we are also reflecting the collective sentiment of our 50,000 employees, for whom sustainability is an increasingly important issue,” said Bruno Roy, chief financial officer of wsp.
The amendment applies to a $1.2 billion syndicated revolving credit facility with terms of up to four years tied to three sustainability performance targets that highlight and measure WSP’s continued advancement of its sustainability initiatives:
- Reduction in market-based greenhouse emissions across our global operations from 2018 to 2021
- Increased percentage of “Green” Revenues (revenues from services having a positive impact on environment) by the end of 2021
- Increase in the percentage of management positions held by women by the end of 2021
Canadian Imperial Bank of Commerce, National Bank Financial and BMO Capital Markets are joint bookrunners and co-lead arrangers on the credit facility.