Anheuser-Busch InBev said it signed a $10.1 billion Sustainability Linked Loan Revolving Credit Facility.
The facility has an initial five-year term (which may be extended by an additional two years), and incorporates a pricing mechanism that incentivizes improvement in four key performance areas — improving water efficiency in ABI’s breweries globally, increasing PET recycled content in PET primary packaging, sourcing purchased electricity from renewable sources and reducing Green House Gas Emission emissions.
If ABI meets the goals, the loan will cost less. If it doesn’t meet the goal, it will cost more.
“We are excited by the further integration of sustainable finance principles into the capital markets and welcome the opportunity to embed these practices deeper into both our finance organization and the broader company. Our business is closely tied to the natural environment, and it is imperative that we continue to strengthen our leadership in addressing the increasing threats of climate change.Our business and our communities depend on it,” said Fernando Tennenbaum, AB InBev CFO.