AB InBev has signed up for a so-called green credit worth EUR 8.3billion (USD 10.1 bn), the biggest ever undertaken by a listed company in the sector. The Sustainability Linked Loan Revolving Credit Facility (SLL RCF) replaces an existing 9.0 billion USD Revolving Credit Facility.
The facility has an initial five-year term which may be extended by an additional two years and is provided by a consortium of 26 leading global financial institutions, with ING and Santander acting as Joint Sustainability Coordinators.
It incorporates a pricing mechanism that incentivizes improvement in the following four key performance areas, that are aligned with and contribute to the company’s 2025 Sustainability Goals:
- Further improving water efficiency in our breweries globally, supporting the Water Stewardship Goal;
- Increasing PET recycled content in PET primary packaging, contributing to the Circular Packaging Goal;
- Sourcing purchased electricity from renewable sources as outlined in the RE100 Commitment; and
- Reducing greenhouse gas emissions as a part of the science-based Climate Action Goal.
The above-listed goals form part of the criteria influencing, upwards or downwards, the margin of the SLL RCF and help reinforce AB InBev’s long-standing commitment to sustainability. This commitment is also evidenced by initiatives such as the company’s 2025 Sustainability Goals and AB InBev’s role as a founding member of the UN Global Compact CFO Task Force, which supports the UN Sustainable Development Goals (SDGs).
“We are excited by the further integration of sustainable finance principles into the capital markets and welcome the opportunity to embed these practices deeper into both our finance organization and the broader company,” said Fernando Tennenbaum, AB InBev CFO.
“Our business is closely tied to the natural environment, and it is imperative that we continue to strengthen our leadership in addressing the increasing threats of climate change. Our business and our communities depend on it,” he added.