Pernod Ricard Secures €2.1bn Sustainability Loan
Pernod Ricard SA
Pernod Ricard has announced the signing of a €2.1 billion loan, which is linked to sustainability, to refinance an existing facility that was due to expire in June 2024.
The refinancing facility linked to sustainability is tied to two environmental commitments: firstly, a decrease in absolute greenhouse gas emissions (Scopes 1 & 2) in operated sites, and secondly, a reduction in water consumption per unit produced at Pernod Ricard's distilleries.
The two key performance indicators, which are part of its 2022 Sustainability-Linked Financing Framework, have been designed to tackle sustainability challenges.
The transaction demonstrates Pernod Ricard's dedication to incorporating sustainability into its day-to-day operations and financing strategy. This aligns with the company's Sustainability & Responsibility (S&R) Roadmap, which outlines its commitment to sustainability.
In 2022, the group launched two sustainability-linked bond issues, which were linked to the same two key performance indicators.
Twenty-two banks have committed to the new credit facility, which has an initial maturity of April 2028 and includes two one-year extension options.
BNP Paribas served as the coordinator and documentation agent, while Crédit Agricole CIB acted as the ESG coordinator for this transaction.
The favourable conditions under which this refinancing was secured demonstrate the confidence of Pernod Ricard's banking partners.
Vanessa Wright, the Chief Sustainability Officer, affirms that their commitment to sustainability is a part of the company's Sustainability & Responsibility roadmap, which aims to preserve natural resources by reducing carbon emissions, water consumption, and waste throughout their value chain. The recent sustainability-linked facility is yet another testament to the company's efforts to reduce its environmental impact and protect the ecosystems from which they source the ingredients that make its iconic brands.
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Source: Pernod Ricard