BMO Financial Group, acting as co-sustainability structuring agent, closed a financing deal with a sustainability-linked loan (SLL) structure with mining company Teck. Adopting a SLL structure as part of its 2021 revolving credit facility renewal enables Teck to link its environmental, social and corporate governance (ESG) goals and financing arrangements.
The deal introduces a margin adjustment incentive mechanism tied to Teck’s commitment to greenhouse gas emissions intensity reduction, increased gender diversity in its workforce and continuous improvement in maintaining a safe and healthy workplace environment.
“Sustainability is at the heart of everything we do, and we’re always working to make our sustainability performance even stronger,” Don Lindsay, president and CEO of Teck, said. “This sustainability-linked facility more fully integrates our performance against our sustainability goals with our financing plan.”
“We’re excited to support Teck’s ESG objectives through this new financing. Teck’s commitment to net zero, gender diversity and health and safety makes them an ideal client to work with,” Jonathan Hackett, head of sustainable finance at BMO, said. “Boldly growing the good in business and life means deploying our expertise in sustainable finance and metals and mining to help leading companies like Teck reach their goals of a more sustainable future.”
The new sustainability-linked, five-year, $4 billion revolving credit facility includes terms that reduce or increase the borrowing based on Teck’s performance in reducing carbon emissions, improving health and safety and strengthening gender diversity in its workforce.