Bell Canada (Bell) announced earlier this month that it has amended its existing $3.5 billion committed credit facilities to convert them into a sustainability-linked loan.
The amendment introduces an annual pricing adjustment that reduces or increases the borrowing cost based on Bell’s performance on two key annual sustainability performance targets:
- Reducing absolute scope 1 and 2 greenhouse gas (GHG) emissions 57 per cent by 2030 from a 2020 base year; and
- Reaching 64 per cent of its suppliers by spend, covering purchased goods and services, having science-based targets by 2026.
These science-based targets for reducing greenhouse gas (GHG) emissions are approved under the Science Based Targets initiative.
It is because these annual targets alone cover the vast majority of its total carbon footprint that Bell has chosen them, the company explained in a press release. They support its commitment to meeting its science-based targets for GHG emissions reduction and supplier engagement, by linking performance to financing costs.
This sustainability-linked loan follows the announcement of BCE’s Sustainable Financing Framework in April 2021, and Bell’s inaugural $500 million Sustainability Bond offering in May 2021 with proceeds allocated to eligible green and social investments.
“We are pleased to announce the closing of this Sustainability-Linked Loan. The SLL aligns with our ESG strategy and performance to make a positive difference through our Bell for Better investments supporting a more sustainable and prosperous future”, said Glen LeBlanc, chief financial officer and vice chair, Atlantic Canada, at Bell.