South32 inks deal for $1.4bn credit facility with environmental objectives
The new revolving credit facility is one of the first in the mining sector to be directly linked to sustainability performance, says CFO Katie Tovich
Diversified miner South32 secured $1.4bn (R22.5bn) in commitments from lenders until 2026, establishing its new credit facility as a sustainability-linked loan .
The facility, which has an option for a two-year extension, refinances the group’s existing undrawn revolving credit facility that was due to expire in 2023.
The facility has been established as a sustainability-linked loan with measures linked to a commitment for emissions reduction and improvements in energy and water use efficiency, the miner said.
“Sustainable development is at the heart of our purpose and forms an integral part of our strategy,” South32 CFO Katie Tovich said in a statement.
“We are taking meaningful action to benefit our stakeholders, our planet and our business. Our new revolving credit facility provides South32 with continued access to substantial liquidity and is one of the first in the mining sector to be directly linked to sustainability performance, aligning our action and access to capital,” Tovich said.
South32 is a globally diversified mining and metals company and produces bauxite, alumina, aluminium, metallurgical coal, manganese, nickel, silver, lead and zinc at its operations in Australia, Southern Africa and South America.
The group was unbundled from BHP in 2015 and completed its sale of its SA coal assets to Seriti earlier in 2021.
Its announcement comes amid increasing pressure on miners, especially coal miners, to beef up their environmental credentials as investment houses and financiers shy away from polluting industries.