- 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