- Sandstorm is the first precious metals royalty company and one
of the first North American metals & mining companies to have a
Sustainability-Linked Loan structured with internal and customized
Key Performance Indicators
- New financing deal aligned with 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. 6, 2021 /PRNewswire/ - BMO Financial
Group (TSX: BMO) (NYSE: BMO), acting as sole Sustainability
Structuring Agent, has announced a financing deal with royalty
company Sandstorm Gold Ltd. ("Sandstorm" or "Sandstorm Gold
Royalties"). Adopting a Sustainability-Linked Loan structure as
part of its 2021 revolving credit facility renewal enables
Sandstorm to link its ESG strategy and cost of capital, reinforcing
and demonstrating its commitment to sustainability.
The deal introduces a margin adjustment incentive mechanism tied
to Sandstorm's commitment to continue building strong workforce
diversity and maintaining its solid ESG governance, while
furthering sustainability and climate-related disclosure
developments in the mining and metals industry through its
investments.
"We're pleased to announce that Sandstorm is the first royalty
company with a credit facility linked to sustainability goals. With
this credit agreement, Sandstorm is helping to lead a new era of
corporate lending that benefits shareholders while promoting
corporate responsibility," said Erfan
Kazemi, Sandstorm's Chief Financial Officer.
"We're excited to support Sandstorm's environmental and social
sustainability objectives through this new financing. Deals like
this are aligned to BMO's Purpose to Boldly Grow the Good in
business and life, and to the way we work with clients across
industries both to serve their needs and work toward a more
sustainable future," said Jonathan
Hackett, Head, Sustainable Finance, BMO Capital Markets.
"Our experience as a leading global metals and mining practice,
combined with our expertise in sustainable finance, makes us the
ideal partner in helping Sandstorm reach its goals."
Sustainability-Linked Revolving Credit Facility
The new Sustainability-Linked 4-Year,
$350 million Revolving Credit Facility includes terms
that reduce or increase the borrowing costs as sustainability
performance targets are met or missed. The performance determinants
are comprised of:
- External ESG Rating: Maintain or improve an ESG rating of
"A" from MSCI Inc.
- Diversity & Inclusion: Increase diversity at the
leadership level to 50 per cent
- Alignment with ESG Reporting Standards: Increase
percentage of assets' alignment with sustainability and climate
related reporting standards and frameworks
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.
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 newly introduced
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.
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SOURCE BMO Financial Group