- 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.
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SOURCE BMO Financial Group