Balfour Beatty agrees sustainable linked loan
20 October 2021
Balfour Beatty reaches agreement on the largest sustainable linked loan in the UK construction sector
Balfour Beatty, the international infrastructure group, today announces it has reached agreement for the conversion of its £375 million revolving credit facility (RCF) to the largest sustainability linked loan in the UK construction industry to date, extending the maturity to October 2024.
The agreement further demonstrates the Group's commitment to Sustainability, following the release of its refreshed Sustainability Strategy, Building New Futures, in December 2020.
Under the terms of the loan, the Group is incentivised to deliver annual measurable performance improvement in three key areas: carbon emissions, social value generation, and an independent Environmental, Social and Governance (ESG) rating score as determined by Sustainalytics, an ESG research, ratings and data provider for institutional investors and companies.
Performance in these three areas will be monitored during the lifetime of the facility and depending on the outcomes achieved, a credit margin reduction or increase will be applicable.
Phil Harrison, Balfour Beatty Chief Financial Officer, said "Balfour Beatty has long been at the forefront of sustainability in the construction sector, with clear targets and ambitions as set out in the company's Group Sustainability Strategy. We are delighted to further demonstrate our commitment with this new sustainability linked loan.
"We appreciate the support of our international bank group and the confidence this commitment reflects in Balfour Beatty."
Max Jones, Infrastructure and Construction Director, Lloyds Bank, said: "We're proud to have worked with Balfour Beatty's international bank group to fund and co-ordinate the largest sustainability linked loan in the UK construction industry.
"With the sector's drive to becoming more sustainable, critical to the UK's net zero ambition, this is an important development for the industry as a whole. Acting as the sole Sustainability Coordinator and the Facility Agent signals our commitment to the industry and our support for Balfour Beatty to reach its ESG goals."
As at 19 October 2021 the RCF, which can be used for general corporate purposes, was undrawn.
Tel. +44 (0)20 7216 6824
Tel. +44 (0)203 810 2345
Notes to editors:
· The RCF is provided by a syndicate of ten international banks consisting of Lloyds Bank, HSBC, CCB, Bank of America, MUFG, RBC, CIBC, Fifth Third Bank, FAB and Crédit Agricole. Lloyds Bank acted as Sustainability Coordinator for this transaction and are also the Facility Agent.
· Balfour Beatty is a leading international infrastructure group with 26,000 employees driving the delivery of powerful new solutions, shaping thinking, creating skylines and inspiring a new generation of talent to be the change-makers of tomorrow.
· We finance, develop, build, maintain and operate the increasingly complex and critical infrastructure that supports national economies and deliver projects at the heart of local communities.
· Over the last 111 years we have created iconic buildings and infrastructure all over the world including: the £1.5 billion A14 improvement scheme - Britain's biggest road project; Hong Kong's HK$5.5 billion world-class harbour theatre project for the West Kowloon Cultural District Authority; and the 12.5 mile $429 million North Metro Commuter Rail line in Colorado, US.