Micron Technology closed nearly $3.7 billion in inaugural sustainability-linked credit facilities.

The facilities consist of a five-year, $2.5 billion sustainability-linked revolving credit facility, which will mature in May 2026, and a nearly $1.2 billion sustainability-linked term loan A, which will mature in October 2024.

The credit facility agreements refinance Micron’s existing revolving credit facility and term loan A facility while reducing future interest expense with no impact to cash or debt balances. Both the revolving credit facility and term loan A feature pricing adjustment mechanisms linking Micron’s financial pricing to meeting the environmental targets the company has set for greenhouse gas (GHG) emission intensity, waste diversion from landfills and Responsible Business Alliance (RBA) score metrics. Crédit Agricole Corporate and Investment Bank served as the sole sustainability structuring agent on both credit facilities.

“The sustainability-linked credit facilities reflect the depth of our commitment to advancing Micron’s environmental, social and governance goals,” David Zinsner, senior vice president and CFO at Micron, said. “In tying our environmental metrics to our financial performance, we aim to achieve positive sustainable impact while taking another step in integrating sustainability into all aspects of our business.”

In its sixth annual sustainability report, Micron detailed its time-bound goals to reduce GHG emission intensity by 75% over 2018 measurements as well as to achieve 75% water conservation and 95% waste diversion globally in 2030. The company also is targeting sourcing 100% renewable energy across its U.S. manufacturing operations by the end of 2025.

“Promoting growth while respecting the planet and its people is a mindset that we are honored to share with Micron,” Marc-Andre Poirier, CEO of Crédit Agricole Americas, said. “We worked closely with Micron to identify challenging sustainability issues and set ambitious targets in line with their strong company-wide commitment. We are proud to support Micron with their inaugural sustainability-linked financing.”