BNP Paribas today announced it acted as joint Sustainability Coordinator for the first Sustainability Linked Loan (SLL) for Treasury Wine Estates, with the refinancing of AU $1.4billion of existing debt linked to agreed sustainability targets.
A first for a wine company in the Asia-Pacific region, the SLL provides Treasury Wine Estates with financial incentives for successfully delivering against agreed sustainability performance indicators.
Key Performance Indicators (KPIs) include achieving 100% renewable electricity by 2024, reduced greenhouse gas emissions, reviewing water usage and footprint at a catchment level in 2022 and achieving 50% women in senior leadership and 42% female representation overall by 2025.
“BNP Paribas is proud of the role we have played supporting Treasury Wine Estates on its sustainability journey with the first ever Sustainability Linked Loan for the company,” said Noemie Peiffer, Head of Sustainable Finance, Capital Markets Group, Global Banking Asia Pacific at BNP Paribas.
“As one of the largest wine companies in the world, Treasury Wine Estates has a significant global footprint. By aligning its sustainability agenda with its financing strategy, Treasury Wine Estates deepens its commitment to having a positive impact across key Environmental, Social and Governance (ESG) metrics.
“As a global bank, we have an important role to play in building a world for future generations and have a responsibility to help create sustainable economies. This latest SLL is another example of BNP Paribas’ efforts and success in this regard,” continued Peiffer.
“BNP Paribas has partnered with Treasury Wine Estates since its formation as a stand-alone group 10 years ago, and our role as Sustainability Coordinator on this refinancing is a natural step in our support for the company,” said Mark Hutchinson, Head of Corporate Clients Group, BNP Paribas Australia and New Zealand. “It’s an honour to undertake such an important role in the on-going success of a leading Australian company.”
Treasury Wine Estates is a global winemaking and distribution business listed on the Australian Stock Exchange (ASX). Its Chief Financial Officer Matt Young said the premium winemaker was following through on its commitment to a lower carbon future.
“We’ve set ambitious targets to be powered by 100% renewable electricity by 2024 and reach net zero emissions (scope 1 and 2) by 2030. By transforming a significant proportion of our existing loans to SLLs, we are proactively incentivising our teams to progress towards our sustainability goals.
“Integrating sustainability within our financial framework is a vital step in building a resilient business for the long-term,” Young added.
BNP Paribas has been a pioneer of the sustainable finance market in Australia, bringing its global expertise to the local market and helping clients achieve meaningful progress in addressing their ESG ambitions.
Kristen Carter Kristen.Carter@asia.bnpparibas.com +852 2909 8821