WSP Global Inc. has become the first professional services firm in the Americas to secure sustainability-linked terms for its syndicated credit facility. WSP signed an amendment to its existing credit facility to include financing terms that reduce or increase the borrowing costs on the lending facility as sustainability targets are met or missed.
The amendment introduces an annual pricing adjustment based on the achievement of ambitious targets related to sustainability. According to WSP, this step reflects the company’s goal to create compelling business value through advancing its vision to have a long-lasting positive impact on society.
The amendment applies to a $1.2 million syndicated revolving credit facility with terms of up to four years tied to three sustainability performance targets that highlight and measure WSP’s continued advancement of its sustainability initiatives:
- Reduction in market-based greenhouse emissions across WSP’s global operations from 2018 to 2021.
- Increased percentage of “green” revenues (revenues from services having a positive impact on the environment) by the end of 2021.
- Increase in the percentage of management positions held by women by the end of 2021.
Canadian Imperial Bank of Commerce, National Bank Financial, and BMO Capital Markets are joint bookrunners and co-lead arrangers on the credit facility, and BNP Paribas acted as sole sustainability coordinator, working with WSP to integrate the sustainability targets into the credit facility.