CMPC Closes Comprehensive Environment-Linked RCF
Santiago, Chile, August 6, 2020 – Empresas CMPC S.A. (“CMPC” or the “Company”), a Chilean pulp and paper company, announced today that it has closed a USD 100 million syndicated Revolving Credit Facility (“RCF”) structured as a sustainability-linked loan (“SLL”) for a term of two years with BNP Paribas acting as Sustainability Coordinator and Administrative Agent. MUFG Bank, Sumitomo Mitsui Banking Corporation, and Export Development Canada acted as Joint Lead Arrangers.
SLLs incorporate a pricing mechanism linked to a company’s environmental, social or governance (ESG) performance. This RCF includes four environmental performance targets as described below:
- Greenhouse gas emissions;
- Industrial water use;
- Industrial waste to landfill;
- Area for protection, conservation and restoration
The aforementioned KPIs are aligned with CMPC’s public corporate sustainability goals and cover a broad range of key sustainability issues for CMPC and the pulp & paper industry as a whole, motivating the Company to outperform holistically. The SLL also offers incentives to achieve results for the Company in line and beyond publicly expressed commitments.
This environment-linked RCF further demonstrates CMPC’s commitment to ESG initiatives and sustainable finance globally:
- In 2019, CMPC made public its four corporate sustainability goals to reduce emissions and the industrial use of water in its operations, increase the ecosystem and biodiversity conservation, and transition to a zero waste to landfill company. The Company also actively participated in the elaboration of the Forest Sector SDG Roadmap by the World Business Council for Sustainable Development (WBCSD), which was presented before the United Nations by CMPC’s CEO, Francisco Ruiz-Tagle. This “roadmap” identifies risks and opportunities for the sector and provides a pathway towards minimizing negative impacts and achieving the SDGs by 2030. In 2019, CMPC was included in the Dow Jones Sustainability Index (DJSI) Chile for the fifth consecutive year and in the Emerging Markets index for the first time, signaling its strong ESG results and commitment.
- The Company also issued its third green bond in the Chilean local capital markets last year for USD 93 million, following previous issuances in Peru (2018) and the United States (2017). CMPC’s 2017 green bond was the first green bond issuance from a Chilean company. Moreover, last year, the Company also closed its first green loan for USD 100 million, via a five-year term Samurai loan.
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