Moscow, 12 May 2021. SIBUR has become Russia’s first petrochemical company to sign a loan with an interest rate which is tied to its sustainability performance.
The USD 50 million loan was issued by UniCredit. Under the sustainability-linked lending model, SIBUR will pay a higher or lower interest rate depending on its progress towards meeting a number of targets within the Company’s previously approved Sustainable Development Strategy:
- reduction in greenhouse gas emissions in the Midstream segment (tonne of CO2 per tonne of products manufactured);
- reduction in greenhouse gas emissions in the Petrochemicals segment (tonne of CO2 per tonne of products sold);
- decrease in water consumption (cubic metres per tonne of product);
- volume of PET produced using recycled materials (starting 2023).
The borrowed funds will be used for financing the Company’s investment and operating activities.
The sustainability-linked borrowing trend has been gaining considerable momentum thanks to its three-pronged set of benefits: banks are able to contribute to the global sustainability agenda, borrowers get access to new funding instruments and society overall reaps the environmental and social dividends.
Peter O'Brien, member of the Management Board and Managing Director for Economics and Finance at SIBUR:
“This borrowing is a logical next step in our integrated approach to business. ESG considerations and priorities are driving strategy formulation and factor into everything we do, all the way from production to financing decisions. We have defined a number of commitments that we believe will most effectively help reduce SIBUR’s environmental footprint and steer the Company in the right direction, one of these being a much higher share of PET production using recycled materials. As a Company intent on being a leading contributor to the growth of the circular economy in its core geographies, we appreciate the importance of a responsible approach to disposing of and recycling used plastics, and it is something that plays into our strategic vision.”