Metalloinvest modifies €200 million loan to include sustainability provisions

By Rebecca Melvin

New York, Dec. 22 – Russia’s Metalloinvest Finance DAC said it has amended provisions of a €200 million syndicated loan valid through May 2026 to include a mechanism that links its interest rate to environmental sustainability performance indicators.

The key performance indicators are development and implementation of a climate action plan aimed at reducing greenhouse gas emissions, reduction of atmospheric air emissions and increased recycling of technological waste, according to a press release.

Achievement of these priorities will be evaluated at two milestones, in 2022 and 2024, based on the company’s independently verified sustainability report

Societe Generale acted as a sustainability coordinator for introduction of the sustainability mechanism to the pre-export financing.

“This step shows our commitment to implementing a comprehensive financial strategy for sustainable development,” Alexey Voronov, Metalloinvest’s deputy chief executive officer-chief financial officer, said in the release.

This is the company's second sustainability-linked loan. In 2019, ING Bank opened a credit line for Metalloinvest for $100 million, for which the interest rate is linked to a corporate social responsibility rating from EcoVadis, an agency specializing in sustainability performance ratings.

The issuer is a Moscow-based mining and metallurgy company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.