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 /CNW/ - 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.
In December 2019, BMO provided Maple Leaf Foods Inc. with the first sustainability-linked loan in Canada. In other firsts, last February BMO provided the first labelled green loan in Canadian history to Atlantic Packaging to finance a new 100 per cent recycled containerboard facility and worked with Atlantic Packaging to establish a green financing framework. In May, it provided an SLL to Gibson Energy to help the company achieve its ESG targets; in doing so Gibson became the first North American public energy company to transition its principal syndicated revolving credit facility fully into a sustainability-linked revolving credit facility. In October 2021 BMO structured the first sustainability-linked loan with internal and customized Key Performance Indicators for a precious metals royalty company – Sandstorm Gold Royalties.
Being its clients' lead partner in the transition to a net zero world also aligns with BMO's establishment of a dedicated Energy Transition Group in June, 2021 along with the BMO Climate Institute, in order to support clients in their pursuit of opportunities driven by the increasing momentum of the global economy's shift in production and consumption of energy.
BMO's leadership on sustainability has been recognized on numerous rankings:
Ranked 15th on The Wall Street Journal's 2020 list of the 100 Most Sustainably Managed Companies in the World, third overall on Social Capital – BMO was the only North American bank included
Top North American bank on Corporate Knights' 2021 Global 100 Most Sustainable Corporations in the World for the second year in a row
Ranked in the top 10 per cent of banks globally on the 2020 Dow Jones Sustainability Index, and the top North American bank
Scored an A- on the 2020 CDP Climate Change disclosure
Ethisphere® Institute's 2020 list of the World's Most Ethical Companies®
Corporate Knights 2021 Best 50 Corporate Citizens in Canada
Joint winner of Environmental Finance's 2021 Lead Manager of the Year, Social Bonds – Local Authority/Municipality category
For more information on BMO's commitment to a sustainable future, please visit the bank's Sustainability Report. To learn more about sustainable finance at BMO click here. For BMO's climate ambition, visit our Climate page.
About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider - the 8th largest bank, by assets, in North America. With total assets of $971 billion as of July 31, 2021, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.
SOURCE BMO Financial Group
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