Stantec, a global provider of sustainable design and engineering, completed an agreement to amend and extend its existing $1.1 billion syndicated senior credit facilities. Pursuant to the amendment, the maturity date for the $800 million revolving credit facility and the $160 million term loan tranche was extended to Oct. 29, 2026, and the maturity date for the $150 million term loan tranche was extended to Oct. 29, 2024.

CIBC is sole bookrunner on the credit facilities, and CIBC and RBC acted as co-sustainability structuring agents.

The credit facilities are structured as a sustainability-linked loan (SLL), aligning Stantec’s financing strategy with its environmental, social and governance initiatives. The SLL has an interest rate incentive mechanism that aligns the cost of funding with targets linked to Stantec’s:

• Greenhouse gas (GHG) emissions reduction targets, which are aligned with the Science-Based Target Initiative (SBTi)
• Bloomberg Gender-Equality Index score (GEI score)

Any savings realized on the credit facilities from achieving these goals will be directed toward activities or organizations that have a positive influence on environmental or social matters.

“Stantec is very proud to be the first organization globally to link its SLL to the Bloomberg GEI score, and the first in Canada to direct proceeds back into the communities we serve to further climate action and social equity,” Theresa Jang, CFO and chair of Stantec’s executive ESG committee, said. “Aligning our corporate financing strategy with our ESG performance demonstrates our commitment to live by our core value of doing what is right.”

Earlier in the year, Stantec committed to setting a 1.5°C science-based target with a baseline of 2019. These GHG emission reduction targets have now been verified by the SBTi. The Bloomberg GEI score is linked to certain social pillars around gender equality, pay equity, leadership diversity and inclusive culture, among others.