Wednesday, July 15, 2020

Britvic announces £400m sustainability-linked financing deal

Britvic has agreed its first sustainability-linked credit facilities as the soft drinks producer looks to hit its sustainability targets.

Believed to be one of the first sustainability-linked credit facilities of its kind in the UK, it allows Britvic to borrow up to £400 million over the next five years whilst linking the margin of the facility to its sustainability grows.

The five-year facility, which can be extended by a further two years, was co-ordinated by Rabobank and has been provided by a group of seven lenders.

The facility is linked to the progress Britvic makes against three sustainability targets. The better Britvic performs against these targets, the further the margin will reduce.

By 2025, the company has committed to making 50% of all plastic bottles in the UK and Ireland from recycled plastic; a 50% reduction in carbon emissions, and 75% of the drinks portfolio globally to be either low or no sugar.

Britvic or the lenders will donate the proceeds from any change in margin to charitable causes.

“We’ve made progress against our sustainability ambitions, however there’s more to do and this is a significant commercial milestone in our journey,” said Sarah Webster, Sustainability Director at Britvic.

“By linking financing to our goals, we can ensure that every penny we invest is done so with our sustainability targets in mind.”

Alastair Cameron, from Rabobank’s London-based loan syndications team, said: “Sustainability-linked financing has been a growing trend for several years but this facility, which will see Britvic donate the discount proceeds to charity, is one of the first of its kind in the UK market.

He added: “Linking funding to metrics like developing a healthier product portfolio and recycling more plastic packaging is one way corporates like Britvic can continue to show leadership to make business more responsible and sustainable.”

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