Helps Teck Resources Advance ESG Goals - New financing deal demonstrates BMO's Purpose commitment for a sustainable future and BMO's ambition to be their clients' lead partner in the transition to a net zero world
TORONTO, Oct. 19, 2021 /PRNewswire/ - BMO Financial Group (TSX: BMO) (NYSE: BMO), acting as Co-Sustainability Structuring Agent, has announced a financing deal with Teck. Adopting a sustainability-linked loan (SLL) structure as part of its 2021 revolving credit facility renewal enables Teck to link its ESG goals and financing arrangements, reinforcing and demonstrating its commitment to sustainability.
The deal introduces a margin adjustment incentive mechanism tied to Teck's commitment to GHG emissions intensity reduction, increased gender diversity in its workforce, and continuous improvement in maintaining a safe and healthy workplace environment.
"Sustainability is at the heart of everything we do, and we're always working to make our sustainability performance even stronger," said Don Lindsay, President and CEO, Teck. "This sustainability-linked facility more fully integrates our performance against our sustainability goals with our financing plan."
"We're excited to support Teck's ESG objectives through this new financing. Teck's commitment to net zero, gender diversity and health and safety makes them an ideal client to work with," said Jonathan Hackett, Head, BMO Sustainable Finance. "Boldly growing the good in business and life means deploying our expertise in sustainable finance and metals and mining to help leading companies like Teck reach their goals of a more sustainable future."
Sustainability-Linked Revolving Credit Facility
The new Sustainability-Linked 5-Year, US$4 billion Revolving Credit Facility includes terms that reduce or increase the borrowing based on the company's performance in reducing carbon emissions, improving health and safety, and strengthening gender diversity in its workforce
BMO continues to work closely with clients in their transition to a more sustainable future as part of its commitment to deploy $300 billion in sustainable lending and underwriting to companies pursuing sustainable outcomes by 2025.