Empresas CMPC in $100 Million Sustainability-Linked Credit Facility
August 4, 2020
Cleary Gottlieb represented Empresas CMPC S.A. (Empresas CMPC), as guarantor, and its subsidiary Inversiones CMPC S.A. (Inversiones CMPC), as borrower, in a $100 million sustainability-linked revolving credit facility signed on August 4, 2020.
The facility is one of the first sustainability-linked credit facilities established in Chile.
BNP Paribas acted as administrative agent and sustainability structuring agent, and the bank syndicate consisted of BNP Paribas Securities Corp., Export Development Canada, MUFG Bank Ltd., and Sumitomo Mitsui Banking Corporation.
Empresas CMPC has decided to index the financial costs of the facility to environmental and social performance indicators, in line with the company’s sustainability strategy and ESG goals.
The four non-financial criteria introduced into the calculation of the facility’s financing costs relate to greenhouse gas emissions (Empresas CMPC aims to reduce by 50% absolute greenhouse gas emissions by 2030), water (Empresas CMPC aims to reduce by 25% industrial use of water per metric ton of product by 2025), waste (Empresas CMPC is targeting zero waste to landfills by 2025), and land use and biodiversity (Empresas CMPC aims to conserve/restore an additional 100,000 hectares of land by 2030).
Empresas CPMC, a Chilean company, is one of the world’s largest pulp and paper producers.