Subscribes to first sustainability-linked loan of 184 million euros
Sonae Arauco has subscribed to its first financing linked to sustainability measures (Sustainability-Linked Loan), in the amount of 184 million euros. The interest rate varies depending on two ESG (Environmental, Social and Governance) indicators: the increase in the purchase of recycled wood and the decrease in work accidents with resulting absenteeism.
“This financing is in line with Sonae Arauco’s strategic objectives and demonstrates our commitment to the sustainable growth of our business, with a focus on the health and safety of our employees,” explains António Castro, Chief Financial Officer at Sonae Arauco. “Linking Sonae Arauco’s sustainability efforts to the company’s financial performance is a natural step towards realizing our vision of developing wood-based material solutions that improve people’s lives and make an important contribution in the fight against climate change.”
With this financing, Sonae Arauco commits to increase the share of recycled wood in its products by 19 percent by 2026. The company also sets itself the goal of significantly reducing the number of occupational accidents with resulting absenteeism.
The defined performance indicators have been validated by S&P and are in line with the Sustainability-Linked Loan Principles issued by the Loan Market Association.
The underwriting was coordinated by CaixaBank with the participation of ABANCA, Caixa Geral de Depósitos, Export Development Canada and Bank of Nova Scotia.