Soft drinks company Britvic has agreed a £400m sustainability-linked credit facility, the first of its kind in the UK.
The margin on the five-year facility has been linked to three sustainability targets – 50% of bottles being made from recycled plastic, a 50% reduction in carbon emissions and 75% of drinks produced being low or no sugar.
The further Britvic progresses towards meeting the targets the lower its margin will be, with the money saved going to charity.
The facility has been co-ordinated by Rabobank and has been provided by a group of seven lenders.
Sarah Webster, sustainability director at Britvic, said: “This financing agreement is part of our commitment to embed sustainability at the heart of our business and drive real behaviour change.
“We’ve made progress against our sustainability ambitions; however, there’s more to do and this is a significant commercial milestone in our journey. By linking financing to our goals, we can ensure that every penny we invest is done so with our sustainability targets in mind.”
Alastair Cameron from Rabobank’s London-based loan syndications team said: “Sustainability-linked financing has been a growing trend for several years, but this facility, which will see Britvic donate the discount proceeds to charity, is one of the first of its kind in the UK market.”
Britvic has committed to reaching its targets by 2025. It has also invested more than £5m towards the construction of a new rPET recycling facility in North Yorkshire.