General Mills has announced it has renewed its five-year $2.7 billion revolving credit facility, which now includes a pricing structure that is tied to environmental impact metrics. General Mills is the first U.S. consumer packaged goods company to put in place a sustainability-linked revolving credit facility.
By entering into the revolving credit facility, General Mills receives a pricing adjustment based on its performance against environmental criteria during the credit facility’s term. General Mills will be measured on progress in two key areas: reducing greenhouse gas emissions in owned operations and using renewable electricity for global operations. Sustainability performance will be measured and communicated in General Mills’ annual Global Responsibility Report.
“For General Mills, regenerating the earth’s natural resources is both a business and environmental imperative,” said Kofi Bruce, chief financial officer, General Mills. “Integrating General Mills’ environmental impact metrics into this financing structure underscores our commitment to drive resilience for the planet, its resources and its people.”
The amendment extends the maturity of the credit facility to 2026 and includes 20 of the company’s banking partners. Joint lead arrangers and joint book runners on this transaction include BofA Securities, Inc., JPMorgan Chase Bank, Barclays Bank PLC, Citibank, N.A, Deutsche Bank Securities Inc., and BNP Paribas. BofA Securities, Inc. is acting as the Sustainability Coordinator.
“We applaud General Mills for the leadership they have shown in using the sustainability-linked loan market to demonstrate their commitment to ESG and corporate responsibility,” said Steven Nichols, head of ESG Capital Markets for the Americas, BofA Securities.