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Russia’s Polymetal increases its sustainability-linked financing to $680 million

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(Kitco News) - Russian mining company Polymetal, a top-10 global gold producer and top-5 global silver producer, announced today that it has agreed US$ 400 million of new sustainability-linked financing with interest rates linked to the Greenhouse Gas (GHG) emission intensity reduction targets.

The company said that financing consists of two loans obtained from Raiffeisenbank and UniCredit. Raiffeisenbank will provide a 4-year US$ 200 million term loan with an accordion option to increase the total commitments to US$400 million, while UniCredit will grant a 5-year US$ 200 million revolving credit facility.

The two loans significantly contribute to the company’s portfolio of sustainability-linked and green financing which now amounts to US$ 680 million and comprises approximately 40% of total debt, the company added.

Polymetal explained that financing incorporates an adjustment mechanism which links the pricing for the loans to the company’s progress on its GHG intensity reduction targets as compared to 2019 baseline year (Scope 1 and 2). Polymetal recently published its first Climate Change Report setting a strategic goal to reduce GHG emission intensity by 30% by 2030, including the intermediate target of 15% by 2025.

“Fast-growing share of sustainability-linked financing in Polymetal’s overall debt portfolio reflects our strong focus on sustainable development including a gradual reduction of the company’s carbon footprint. Combating climate change by increasing energy efficiency and using renewable energy is among our strategic priorities, and the company is actively using ESG-linked financing instruments to facilitate this transition”, said CFO Maxim Nazimok.

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