HICL renegotiates £400m credit facility based on ESG targets

London-listed infrastructure investment firm HICL has renegotiated its £400m revolving credit facility (RCF) used to support the acquisition of new investments, the company said on Monday.

The facility links interest charged to HICL's performance in relation to environmental, social and governance (ESG) issues. HICL will incur a premium or reduction to the interest charged on the RCF based on performance against the targets:

These include increasing the percentage of portfolio companies with energy, water and waste reduction initiatives in place, lower greenhouse gas emissions, making voluntary charitable contributions and supporting local community engagement.

Performance against the targets will be measured annually, with the cost of the RCF being adjusted for the following year.

The facility will run until May 31 2023. The consortium of lenders comprises Crédit Agricole, HSBC, ING, Lloyds, National Australia Bank, Royal Bank of Scotland International, Santander and Sumitomo Mitsui Banking Corporation.