TORONTO – Maple Leaf Foods Inc. recently secured terms for its credit facilities that are linked to sustainability targets — a first for any Canadian company.
The company signed an amendment to its existing credit facilities to include financing terms that reduce the interest rate on the credit line as key sustainability targets are met. The company’s credit facilities include an unsecured committed revolving line of credit and two unsecured committed term facilities totaling C$2 billion in funding for a period ranging from 2019 to 2024.
“We are proud to be the first major food company in the world to be carbon neutral, and excited to be the first Canadian company to secure financing terms that reward our commitment to dramatically reduce our environmental footprint,” said Michael McCain, president and CEO of Maple Leaf Foods.
Sustainability linked credit terms align with the company’s goals to address climate change. In November, Maple Leaf announced a sweeping initiative to become the first carbon neutral major food company in the world.
BMO Capital Markets is sole bookrunner on the credit facilities and acted as a Sustainability Structuring Agent, working with Maple Leaf Foods to integrate the sustainability targets into the credit facilities.