Maple Leaf Foods completed an extension of its existing $2 billion sustainability-linked credit facility with its existing banking syndicate. The credit facility consists of a C$1.3 billion unsecured committed revolving line of credit maturing on June 29, 2027 and two unsecured committed term facilities in the amounts of $265.0 million and C$350.0 million, maturing on June 29, 2027 and June 29, 2026, respectively.

“Three years ago, we launched the first sustainability-linked loan in Canada,” Geert Verellen, chief financial officer, said. “By extending the facility, not only are we continuing to integrate Maple Leaf’s sustainability commitments into all aspects of our business, we are also solidifying our access to capital as we complete near term projects like our state-of-the-art poultry facility in London, Ontario and position ourselves to capitalize on future growth opportunities.”

The sustainability-linked metrics incorporated into the credit facility are made up of annual environmental targets directly influenced by Maple Leaf’s actions. These targets include greenhouse gas emissions, electricity usage, water usage, and solid waste generated. Maple Leaf may incur positive or negative pricing adjustments on drawn credit spreads and standby fees based on its performance versus the targets that have been set.

The facility bears interest based on short-term interest rates and is intended to meet the company’s remaining funding for the completion of its state-of-the-art poultry facility in London, Ontario, in addition to providing appropriate liquidity levels for the Company and general corporate purposes.

The lending syndicate for the new facility comprised of nine financial institutions with BMO Capital Markets acting as sole book runner and sustainability structuring agent, and BMO Capital Markets, RBC, Scotiabank, CIBC and Rabobank Canada as co-lead arrangers. Four additional lenders participated.