Pernod Ricard, the leading manufacturer of premium wines and spirits, has taken a big step towards sustainable financing with its €2.1 billion sustainability-linked loan. The loan will be used to refinance an existing facility set to expire in June 2024. With this move, Pernod Ricard aims to reduce its carbon footprint and water consumption, which are part of the company’s ‘Sustainability-Linked Financing Framework’.
The refinancing initiative shows Pernod Ricard’s commitment to becoming more environmentally responsible, both in its day-to-day operations and financing strategies. The loan helps the company achieve its Sustainability & Responsibility (S&R) Roadmap goals.
Pernod Ricard’s Chief Sustainability Officer, Vanessa Wright, emphasized the importance of the company’s sustainability initiatives in preserving the world’s natural resources. “As part of our sustainability and responsibility roadmap ‘Good Times from a Good Place,’ we are committed to reducing carbon emissions, water consumption, and waste throughout our value chain,” she said.
This line of credit attracted 22 banks and has an initial maturity in April 2028, with a two-year extension option. Pernod Ricard has already started issuing two sustainability-linked bonds in 2022, linked to the same environmental performance indicators. However, this announcement marks the company’s first sustainability-linked loan.
In conclusion, Pernod Ricard’s latest sustainability-linked financing move represents a significant step towards sustainable business practices. By leveraging innovative financing tools, the company reinforces its commitment to environmental responsibility while achieving its business objectives.
