Leading global food company General Mills announced that it has become the first U.S. consumer packaged goods company to put in place a sustainability-linked revolving credit facility, with the renewal of its $2.7 billion facility including a pricing structure that is tied to environmental impact metrics.
Kofi Bruce, Chief Financial Officer, General Mills, said:
“For General Mills, regenerating the earth’s natural resources is both a business and environmental imperative. Integrating General Mills’ environmental impact metrics into this financing structure underscores our commitment to drive resilience for the planet, its resources and its people.”
The new facility ties General Mills’ borrowing costs on the debt to the company’s progress in two key environmental sustainability areas, including the reduction of greenhouse gas emissions (GHG) in owned operations and the use of renewable electricity for global operations. The company’s sustainability goals include reducing absolute GHG emissions across the value chain by 30% by 2030, and achieving net zero by 2050.
Joint lead arrangers and joint book runners on the transaction include BofA Securities, JPMorgan Chase Bank, Barclays Bank, Citibank, Deutsche Bank Securities, and BNP Paribas.
Steven Nichols, head of ESG Capital Markets for the Americas, BofA Securities, said:
“We applaud General Mills for the leadership they have shown in using the sustainability-linked loan market to demonstrate their commitment to ESG and corporate responsibility.”