20th Oct 2021 08:57
(Alliance News) - Balfour Beatty PLC on Wednesday said it has agreed on the conversion of its GBP375 million revolving credit facility to the sustainability linked loan, extending the maturity to October 2024.
Under the terms of the loan, the company said it will deliver improvement in three areas: carbon emissions, social value generation, and an independent environmental, social & governance.
The London-based construction company said performance in these three areas will be monitored during the lifetime of the credit facility and depending on the outcomes achieved, a credit margin reduction or increase will be applicable.
"We appreciate the support of our international bank group and the confidence this commitment reflects in Balfour Beatty," said Chief Financial Officer Phil Harrison.
The FTSE 250 stock was trading 0.5% lower in London on Wednesday morning at 261.20 pence a share.
In August, Balfour Beatty restarted interim payouts and reiterated its 2021 outlook. The company confirmed that it expects its profit from operations for earnings-based businesses in 2021 to be in line with the GBP172 million reported in 2019.
The move came after Balfour Beatty posted a pretax profit of GBP35 million for the half-year ended July 2, compared to a GBP26 million loss a year before. Pretax profit, however, remained 44% below the GBP63 million reported in the same period in 2019.
By Evelina Grecenko; [email protected]
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