Mace secures £60m sustainability-linked loans to aid overseas growth

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Mace has secured 2 sustainability-linked loans worthy a combined £60m to enactment its overseas maturation and biology projects – 1 of the biggest deals of its kind, according to the firm.

Through an statement with Spanish slope BBVA, Mace has clinched 2 “ESG-linked liquidity financing facilities”, with the largest worthy £50m and financed by JP Morgan done the Export Development Guarantee (EDG), and supported by UK Export Finance (UKEF).

The 2nd installation is simply a £10m revolving recognition installation signed by BBVA. The Spanish slope acted arsenic sustainability co-ordinator for some facilities.

The loans are linked to 3 environmental, societal and governance (ESG)-led KPIs, which measurement the firm’s show connected c reduction, expanding the usage of renewable energy, and improving wellness and information performance.

Mace’s enactment against these KPIs volition beryllium tracked, influencing the involvement complaint paid connected the facilities, with the woody intending to further incentivise the institution to present its targets for ESG performance.

It represents different large statement for operation firms that person precocious sought antithetic methods to concern enactment towards becoming much environmentally responsible.

Mace radical main fiscal serviceman Richard Bienfait said: “We are delighted to beryllium entering into this statement with BBVA and JP Morgan, which volition enactment our maturation overseas and our important sustainability priorities.

“As a purpose-led business, Mace is committed to guarantee that we bash everything we tin to prosecute a sustainable satellite – and this landmark financing statement reflects that ambition.”

Elena Guillem, planetary narration manager for Mace radical astatine BBVA UK, said the Spanish slope was “thrilled” to enactment with Mace, and to assistance it find “coherent financing alternatives” to assistance with its committedness to adhd worth to nine and the environment.

JP Morgan planetary caput of export and bureau concern John Meakin added: “We are delighted to execute this ‘first’ with Mace, BBVA and our long-time ECA partner, UKEF, which builds connected the firm’s strategy to enactment the modulation to a lower-carbon economy.”

Mace announced past twelvemonth that it had achieved net-zero c presumption successful 2020, done a important simplification successful emissions from its ain operations and the usage of gold-standard c offsets.

The institution has committed to maintaining its net-zero position, reducing its operational c and moving with clients to region much than a cardinal tonnes of c from the enactment it delivers connected their behalf by 2026.

Liquidity financing facilities springiness companies the enactment of borrowing wealth astatine abbreviated notice, but bash not registry automatically arsenic debts connected fiscal accounts, alternatively acting arsenic a reserve cookware of money.

These sustainability-linked loans tin beryllium linked to definite KPIs that absorption connected the borrower’s wide enactment alternatively than a circumstantial project.

In October 2021, Balfour Beatty announced that it had secured the sector’s “largest sustainability-linked loan”, worthy £375m. This was aft it converted its existing revolving recognition facility.

In the aforesaid year, Willmott Dixon secured a revolving recognition installation worthy £50m, tied to its net-zero c commitments.