Polymetal partnered with ING to convert its existing bilateral credit facility of USD 80 mln with the bank into a sustainability performance-linked loan (Sustainability Improvement Loan)
25 April 2018
Polymetal International plc (LSE, MOEX: POLY; ADR: AUCOY) (together with its subsidiaries – “Polymetal”, the “Company”, or the “Group”) is pleased to announce that it has partnered with ING to convert its existing bilateral Credit Facility of US$ 80 million with the bank into a sustainability performance-linked loan. Polymetal is one of the first in the global mining industry and the first company in CIS to work together with ING to attach its sustainability performance to such a facility. This collaboration is also one of the first of its kind across the mining industry.
By entering this agreement, Polymetal has committed to making further improvements to its environmental, social and governance (ESG) performance. Progress on specific goals will be measured independently by Sustainalytics, a leading provider of environmental, social and corporate governance research and ratings. If the Sustainalitics score for Polymetal improves, the interest rate for the loan will be decreased. Conversely, if the Sustainalytics score deteriorates, the interest rate will increase.
Maxim Nazimok, Chief Financial Officer of Polymetal. commented: “Sustainability is a fundamental part of our business strategy. As a responsible business, we feel that we have a duty of care both for the people affected by our operations as well as the wider environment. We also see continual improvement of our ESG credentials as a vital investment in the long-term future of our Company. This collaboration with ING complements Polymetal’s strategy. We believe that incorporating sustainability metrics into every aspect of our business, from daily operations to corporate financing, is key to creating value for our stakeholders and results in superior performance.
Mikhail Chaikin, Chief Executive Officer of ING Russia, commented: “We are delighted to bring this innovative sustainability product to our customers in Russia. We appreciate the commitment and market leadership demonstrated by Polymetal to adopt this concept. We have a strong pipeline of sustainability deals and will continue to find innovative ways to empower and support our clients in their sustainability journey”.