- Gibson Energy Inc. is the premier public energy company North America fully transform its primary syndicated revolving credit facility into a sustainability revolving credit facility
- New Funding Agreement Well Aligned with BMO’s Commitment to Supporting Customers in Their Transition to a More Environmentally, Social and Economically Sustainable World
TORONTO, April 28, 2021 / CNW / – BMO Financial Group (TSX: BMO) (NYSE: BMO), acting as responsible for structuring sustainability, announced a financing agreement with Gibson Energy Inc., a leading North American energy company plan. An amendment to an existing credit facility, the agreement introduces a margin adjustment incentive mechanism tied to Gibson’s commitment to reduce carbon emissions and increase racial and ethnic representation in its workforce and within its board of directors. As part of this financing, a portion of Gibson’s borrowing costs will depend on whether or not ambitious predetermined sustainability goals are met.
“As part of our efforts to embed the principles of sustainability and ESG into all aspects of our business, we are very pleased to be the first not only among our Canadian peers in the area of mid-level energy infrastructure. , but also among all public energy companies North America, to fully transform our primary credit facility into a sustainability linked credit facility, “said Sean brown, Senior Vice President and Chief Financial Officer. “This is further proof of our commitment to achieving our sustainability and ESG goals, as the key goals of each of the three ESG pillars will now also have a direct impact on our funding costs.
“Agreements like this with Gibson Energy are aligned with how BMO works with customers across all industries, including the energy sector, to help them continue their transition to a greener economy – which proves that we can both meet the needs of our customers. and working for a more sustainable future ”, declared Jonathan hackett, Head, Sustainable Finance, BMO Capital Markets. “Our experience in the energy sector combined with our expertise in sustainable finance positions us as the ideal primary partner to help Gibson Energy achieve its environmental and social sustainability goals.”
Revolving credit facility linked to sustainable development
The new 5 years linked to sustainable development, $ 750 million The revolving credit facility includes terms that reduce or increase borrowing costs as sustainability and ESG goals are met or not. The determinants of performance, as previously announced by Gibson Energy, are:
- Environmental: reducing the intensity of Scope 1 and Scope 2 GHG emissions by 15% by 2025
- Social: increase in the representation of women in the labor force to 40% – 42% as well as the representation of racial and ethnic minorities in the labor force to 21% – 23% by 2025
- Governance: increase the representation of women on the Board to at least 40% as well as at least one Board member who identifies as a racial or ethnic and / or indigenous minority by 2025
BMO continues to work closely with its clients as they transition to a more sustainable future. In December 2019, BMO granted Maple Leaf Foods Inc. the first sustainability loan in Canada, allowing Maple Leaf Foods to reduce the interest rate on the loan facility if it meets targets in line with achieving net carbon neutrality. In another first, last February, BMO granted the first labeled green loan in Canadian history to Atlantic Packaging to finance a new installation of 100% recycled containerboard and worked with Atlantic Packaging to release a framework for green financing.
In March 2021, the bank announced its climate ambition, including its intention to build unique climate analysis capabilities to be its clients’ primary partner in the transition to a net zero world. In the announcement, the bank showcased the BMO Climate Institute, a multidisciplinary organization that harnesses science, analytics powered by innovative technology and industry-leading expertise. As part of its commitment to sustainable finance, BMO is committed to deploying 300 billion dollars in sustainable loans and subscriptions by 2025.
BMO’s leadership in sustainability has been recognized in numerous rankings:
- Ranked 15e at The Wall Street Journal2020 list of the world’s 100 most sustainably managed companies, third overall in share capital – BMO was the only North American bank included
- First North American Bank of Corporate Knights’ 100 Most Sustainable Companies in the World 2021 for the second year in a row
- Ranked in the top 10 percent of the world’s banks on the 2020 Dow Jones Sustainability Index, and in North America’s # 1 bank
- Got an A- on the 2020 CDP Climate Change Disclosure
- Ethisphere® Institute of the World’s Most Ethical Companies 2020 List®
- Corporate Knights 2020 The 50 Best Corporate Citizens in Canada
- Co-winner of the title of Senior Manager of the Year 2021 from Environmental Finance, Social Obligations – Local Authority / Municipality category
To learn more about BMO’s commitment to a sustainable future, please see the bank’s Sustainability Report. To learn more about sustainable finance at BMO, click here. To learn more about BMO’s climate ambition, visit our Climate page.
About BMO Financial Group
Serving clients for 200+ years, BMO is a highly diversified financial services provider – the eighth largest bank by assets in North America. With total assets of $ 973 billion as of January 31, 2021 and a diverse and highly engaged team of employees, BMO offers a broad range of personal and commercial banking, wealth management and investment products and services to over 12 million customers. the activities of three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.
SOURCE BMO Financial Group
For further information: For media inquiries: Kelly Hechler, Toronto, [email protected], (416) 867-3996