17th Feb 2020 13:46
(Alliance News) - Britvic PLC said on Friday said that it has secured its first sustainability-linked credit facility of GBP400 million.
The FTSE 250-listed soft drinks producer said that the five-year facility - expiring in 2025, with the ability of extend by a further two years - has been provided by a group of seven lenders. The refinanced facility includes a number of annual KPI's linked to Britvic's sustainable business strategy. The achievement of set targets will generate a reduction in the margin payable to the lenders.
The targets include a 50% reduction in carbon emissions when compared to 2017, for 75% of the company's drinks portfolio to be either low or no sugar, and for 50% of all its plastic bottles in Britain and Ireland to be made of recycled plastic.
According to the agreement, if Britvic meets two or three of its sustainability targets, the margin will decrease and Britvic will pay any savings to charity. If the company meets one target, the margin will remain unchanged. If it fails to meet any of the three sustainability targets, the margin will increase and the lenders will pay the difference to charity.
"This financing agreement is part of our commitment to embed sustainability at the heart of our business and drive real behaviour change. We've made progress against our sustainability ambitions, however there's more to do and this is a significant commercial milestone in our journey. By linking financing to our goals, we can ensure that every penny we invest is done so with our sustainability targets in mind,†said Britvic's Sustainability Director Sarah Webster.
The stock was trading 1.9% lower at 914.50 pence each in London.
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Britvic