Societe Generale has agreed a bilateral sustainability-linked credit facility with Polymetal
- 19 September
Societe Generale has agreed a bilateral sustainability-linked credit facility of up to US$ 75 million with Polymetal. The facility incorporates an adjustment mechanism which links the pricing of the loan to five of Polymetal’s key environmental and social indicators.
Share of sustainability-linked financing has increased to US$ 155 million in the Group’s portfolio or 9% of its net debt.
By entering the agreement with Societe Generale, Polymetal has committed to meeting specific targets in the following areas:
- Implementing a comprehensive climate management system.
- Ensuring tailings storage safety.
- Reducing fresh water use.
- Maintaining occupational health and safety.
- Supporting and engaging local communities.
The above‑listed KPIs will be monitored annually. Depending on the company’s performance during each yearly period, the loan interest rate may decrease, stay unchanged or increase.
Rosbank acted as the bank - holder of the security account.
Maxim Nazimok, Chief Financial Officer of Polymetal, commented: “With this loan we are increasing the share of sustainability‑linked financing in our credit portfolio and optimizing the cost of our debt. The ambitious sustainability targets linked to this loan encourage us to continue making tangible and verifiable progress in reducing our environmental footprint and improving our conduct as a responsible corporate citizen”.
Stephanie Clement de Givry, Global Head of Metals & Mining Finance of Societe Generale, stated: “We are proud to sign our first sustainability‑linked loan within the metals and mining sector worldwide and delighted to have closed this transaction with Polymetal International plc. Société Générale is fully committed to develop innovative and impactful finance and advisory offering which allow our clients to advance their long-term ESG strategy”.
Patricia Isaeva, First Vice-President of Rosbank, Managing director of Global Banking and Advisory Russia, noted: “We are excited to support one of our top Russian clients in advancing its environmental and social commitments. A set of five environmental and social KPIs chosen for this transaction demonstrates clear ambitions of Polymetal to achieve further progress in its sustainability strategy. With this landmark ESG-linked loan, we are happy to accompany our client in these initiatives delivering the best-class expertize of Societe Generale.”