The facility was originally launched at USD450m and achieved oversubscription of nearly 3 times the launch amount. Commitments were scaled back and the significant market demand allowed the deal to be increased, closing at USD600m.
Investec will achieve a reduction in margin on the loan if it meets its sustainability targets, as measured by Sustainalytics; but will face an increase if it falls short of them.
Ruth Leas, CEO of Investec Bank plc, commented:
“It is important for us to demonstrate that we are on this journey together with our clients, who also have an increasing appetite for ESG-linked products.”
Manoelle Lefevre, Head of Financial Institutions at Investec Bank plc, commented:
“The oversubscription of this loan highlights not just an appetite among our institutional lenders for Investec as a business, but also for thoughtful lending structures which incentivise borrowers to act in an even more sustainable way.”
Tanya Dos Santos, Global Head of Sustainability at Investec, commented:
“We’re proud of the opportunity this facility presents to build on our long-term commitment to operate responsibly and make a positive contribution to the world we live in. Improving an already strong rating will be challenging, but it shows the depth of commitment from Investec’s leadership to further reinforcing our sustainability performance across all areas of environment, social and governance, not just one ESG KPI.”
A total of 33 banks subscribed to the transaction, from across Africa, North America, Asia, the Middle East and Europe, highlighting strong support for Investec in global credit markets.
Sustainalytics’ ESG Risk Ratings measure a company’s exposure to industry-specific material ESG risks and how well a company is managing those risks. The platform monitors more than 4,000 companies around the world.
Investec’s current Sustainalytics score is 20.2, comparing favourably against both UK and international banking peers. In order to qualify for the margin reduction, Investec will need to reduce its score to below 20.0 at the September 2021 rating, 19.6 in 2022, 19.0 in 2023 and 18.5 in 2024.
|Sustainalytics risk rating||ESG risk severity|