- Reflects shared commitment to sustainable future and carbon neutrality
TORONTO, Dec. 11, 2019 /CNW/ - BMO Financial Group (TSX:BMO) (NYSE:BMO) today announced it is providing Maple Leaf Foods Inc. the first sustainability-linked loan in Canada.
The amendment to the existing credit facilities will allow Maple Leaf Foods to reduce the interest rate on the lending facility if it meets targets on electricity use, water use, solid waste and continuing to reduce its carbon emissions in line with its achievement of net carbon neutrality.
BMO is the Sole Bookrunner on the existing credit facilities and will additionally act as a Sustainability Structuring Agent – working with Maple Leaf Foods to establish its targets. The credit facilities consist of an unsecured committed revolving line of credit and two unsecured committed term facilities totaling $2 billion in funding for a period ranging from 2019 to 2024.
"Providing this facility represents a new way that we can strengthen our Purpose to Boldly Grow the Good in business and life and our commitment to working with clients as they build upon the sustainability of their operations," said Dan Barclay, Chief Executive Officer and Group Head, BMO Capital Markets. "We're excited to work with Maple Leaf Foods to support their own sustainability efforts. We're focused on driving positive change, and supporting our Canadian clients in this way will help achieve a wide range of sustainable development goals."
In June, BMO committed to mobilizing $400 billion of Sustainable Finance by 2025, aligned to BMO's Purpose. The commitment includes both management of client investments earmarked for sustainable objectives, and mobilizing $150 billion in capital to support companies pursuing sustainable outcomes. In addition, the Bank has announced the creation of an impact investment fund, with $250 million in seed capital, to find and scale solutions to sustainability.
About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider - the 8th largest bank, by assets, in North America. With total assets of $852 billion as of October 31, 2019, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.
SOURCE BMO Financial Group