With the hope of reducing greenhouse gas emissions and supporting job creation in host communities by 2030.
By Nondumiso Lehutso 15 Sep 2022 11:18
JSE-listed mining company Anglo American has launched a €745 million sustainability-linked bond which will see investors being entitled to a higher final coupon payment if the company fails to meet its key performance targets.
The company noted in a Sens statement on Thursday that the bond is the first instrument to be issued following the company’s recently adopted sustainability financing framework and will mature in 2032.
It indicated that its targets include:
Reducing absolute greenhouse gas emissions (scope 1 and 2) by 30% by 2030, compared to 2016
Reducing the abstraction of fresh water in water scarce areas by 50% by 2030 compared to 2015
Supporting five offsite jobs for every onsite job by 2030
“The financing mechanism will see a coupon increase of 40bps accruing from September 2031 for each of the selected KPIs (key performance indicators) that do not achieve its target or if the verification of the target being achieved has not been published,” the company adds.
It says its sustainability financing framework was established in accordance with the sustainability-linked bond principles (SLBP) 2020 administration by the International Capital Market Association and the sustainability-linked loan principles (SLLP) 2022 administered by the Loan Market Association.
Anglo American says its sustainability financing framework covers bonds, loans and other financing instruments and furthers the company’s funding requirements to stretch goals set out in its sustainable mining plan.