Lundin links $2.55bn credit and loan facilities to ESG performance
Canadian base metals company Lundin Mining has amended terms of two credit facilities – a $1.75-billion revolving credit facility and na $800-million term loan – to implement a sustainability-linked loan structure.
The sustainability-linked loan structure incentivises reduced greenhouse-gas emissions and thriving communities, which focuses on community relations as a core element of a mining company’s social licence to operate.
Lundin worked with its co-sustainability structuring agents, Bank of Montreal, The Bank of Nova Scotia, ING Capital and Canadian Imperial Bank of Commerce to establish key performance indicators and sustainability performance targets that link its financing strategy to its sustainability strategy, whereby the interest rate margin in the facilities will be adjusted based on its performance relative to the targets.
Lundin operates in South America, North America and Europe.
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