Alpek closes US$200 million sustainability-linked loan
Sustainability

Alpek closes US$200 million sustainability-linked loan

The loan incorporates a pricing mechanism that incentivizes improvement in two of the company’s key ESG target

  • By ICN Bureau | August 08, 2023

Alpek announced the successful refinancing of the outstanding balance from the 2023 bond due in August with bank debt that includes a US $200 million Sustainability-Linked Loan maturing in 2028. This represents Alpek’s first transaction with an ESG component, reiterating its commitment and progress toward its ESG strategy.

The loan incorporates a pricing mechanism that incentivizes improvement in two of the company’s key ESG Targets:

• Reduction in Carbon emissions for Scope 1, Scope 2, and Scope 3

• Reduction in its Incident Rate for its employees and contractors

The first strengthens Alpek’s alignment to its Science-Based Targets, simultaneously continuing its efforts to achieve net zero emissions. While the second contributes towards its Occupational Safety Target aiming to reach top-decile in the industry.

This transaction was structured by Bank of America, Export Development Canada, and HSBC. Bank of America jointly with HSBC acted as Sustainability Coordinators.

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