Cleaning products group raises €175m ‘green’ funding facility
McBride, the Manchester-based cleaning products group, has signed a €175m multi-currency sustainability linked revolving credit facility.
It is initially for a five year tenor with the option to be extended to September 30, 2027, and is provided by a syndicate of supportive international bank lenders.
The facility also includes a €75m uncommitted accordion feature which could provide additional commitments for potential acquisitions in support of the group’s Compass strategy.
McBride says the facility, which is aligned with the Loan Market Association Sustainability Linked Loan Principles, incorporates three sustainability performance targets which are central to its commitment to maintaining a responsible business and to actively contribute to a more sustainable future:
- Renewable energy: McBride strives to reduce its environmental impact by increasing the percentage of energy from renewable sources from 5.9% in fiscal year 2020 to 70% in 2026;
- Recycled content: As plastics are a significant element in many of the final products of McBride, the company targets to significantly increase the post-consumer recycled content of polyethylene terephthalate (PET) plastic packaging sourced for manufacturing its products from 64% in 2020 to 94% in 2026;
- Responsible sourcing: McBride targets to source all the paper and card components responsibly via FSC-approved suppliers, with the percentage of virgin carton sourced from FSC-approved suppliers increasing from 50% in 2020 to 100% in 2026.
Successful achievement of the annual targets results, which will be outlined in full in the group’s 2021 annual report, will result in the earning of a discount on the margin of the facility.
