Anheuser-Busch InBev announces $ 10.1 billion revolving credit facility linked to sustainability
Proposed by Anheuser-Busch InBev
February 18, 2021 / CSRwire / – Anheuser-Busch InBev SA / NV (“AB InBev”) (Euronext: ABI) (NYSE: BUD) (MEXBOL: ANB) (JSE: ANH) today announced the successful signing of a new USD billion Sustainability Linked Loan Revolving Credit Facility (“SLL RCF”), which replaces its existing USD 9.0 billion revolving credit facility.
This landmark facility is the largest RCF SLL in history1 and the first such syndicated facility among publicly traded alcoholic beverage companies2. The facility has an initial term of five years (which can be extended for an additional two years) and incorporates a pricing mechanism that incentivizes improvement in the following four key performance areas, which are aligned and contribute to development goals sustainable 2025 of the company:
- Further improve water efficiency in our breweries globally, supporting the goal of water management;
- Increase PET recycled content in primary PET packaging, contributing to the circular packaging goal;
- The supply of electricity purchased from renewable sources, as indicated in commitment RE100; and
- Reducing GHG Emissions as Part of the Science-Based Climate Action Goal
The objectives listed above are among the criteria influencing the margin of our SLL RCF upwards or downwards and reinforces AB InBev’s long-standing commitment to sustainability. This commitment is also evidenced by initiatives such as the company’s 2025 Sustainable Development Goals and AB InBev’s role as a founding member of the CFO Working Group of the United Nations Global Compact, which supports the Development Goals. Sustainable Development (SDG). Integrating sustainability into AB InBev’s financing strategy strengthens internal and external alignment with the company’s Better World agenda. The SLL RCF demonstrates that a sustainable business is good business.
The new facility is provided by a consortium of 26 leading global financial institutions, ING and Santander acting as joint sustainability coordinators.
“We are excited about the further integration of the principles of sustainable finance into capital markets and we welcome the opportunity to embed these practices more deeply both in our financial organization and in the business at wider. Our business is closely linked to the natural environment, and it is imperative that we continue to strengthen our leadership to address the growing threats of climate change. Our business and our communities depend on it, ”said Fernando Tennenbaum, Chief Financial Officer of AB InBev.
“This major sustainability loan is a milestone for both AB InBev and the beverage industry as a whole. AB InBev has demonstrated a clear level of ambition by incorporating a wide range of material sustainability goals into this core lending facility. I am proud that ING is supporting AB InBev towards their goals with this sustainable financing structure and at the same time implementing our strategy to help our clients face climate risks and move towards a circular economy. said Steven van Rijswijk, CEO of ING.
“We have a long-standing relationship with AB InBev and are delighted to support the company in this landmark transaction that aligns the sustainability priorities of our institutions. This agreement demonstrates AB InBev’s ambition to drive positive change and lead the way in innovation, ”noted José M. Linares, Senior Executive Vice-President of Banco Santander and Global Head of Santander Corporate & Investment Banking.
Partnerships are essential for sustainable development. AB InBev is proud to partner with ING, Santander and the larger group of 26 backing banks on this innovative and landmark SLL RCF.
1, 2 Source: Bloomberg NEF, Dealogic, Refinitiv LoanConnector