Britvic has agreed its first sustainability-linked credit facility, allowing it to borrow up to £400m over the next five years whilst linking the margin of the facility to its sustainability goals.
The five-year facility, which can be extended by a further two years, was co-ordinated by Rabobank and has been provided by a group of seven lenders. The facility is linked to the progress Britvic makes against three sustainability targets. The better Britvic performs against these targets, the further the margin will reduce.
Britvic has committed to reaching these targets by 2025 under the terms of its sustainable business strategy. These include 50% of all plastic bottles in Great Britain and Ireland to be made of recycled plastic (rPET); 50% reduction in carbon emissions (when compared to 2017); and 75% of the drinks portfolio globally to be either low or no sugar.
In what is one of the first agreements of its kind in the UK, Britvic or the lenders will donate the proceeds from any change in margin to charitable causes.
Sarah Webster, Sustainability Director at Britvic, said: “This financing agreement is part of our commitment to embed sustainability at the heart of our business and drive real behaviour change.
“We’ve made progress against our sustainability ambitions, however there’s more to do and this is a significant commercial milestone in our journey. By linking financing to our goals, we can ensure that every penny we invest is done so with our sustainability targets in mind.”
