Wednesday, May 19th 2021
Micron Closes Sustainability-Linked Credit Facilities Totaling Nearly $3.7 Billion
Micron Technology, Inc. (Nasdaq: MU), today announced the successful closing of nearly $3.7 billion inaugural sustainability-linked credit facilities. The facilities, which create additional long-term value for Micron's stakeholders, reinforce the company's commitment to sustainability and 2030 environmental goals.
These facilities comprise a five-year $2.5 billion sustainability-linked revolving credit facility, which matures in May 2026, and a nearly $1.2 billion sustainability-linked term loan A, which matures in October 2024. The credit facility agreements refinance Micron's existing revolving credit and term loan A facilities with no impact to cash or debt balances while reducing future interest expense. Both the revolving credit facility and term loan A feature pricing adjustment mechanisms linking Micron's financial pricing to meeting the environmental targets the company has set for greenhouse gas (GHG) emission intensity, waste diversion from landfills and Responsible Business Alliance (RBA) score metrics. Crédit Agricole Corporate and Investment Bank (CIB) served as the sole sustainability structuring agent on both credit facilities.
This transaction reflects Micron's leadership in sustainable financing and positions the company as a top-five corporate sustainability-linked credit facility issuer in the U.S. while reaffirming Crédit Agricole CIB's role as a strategic investment bank and partner to global companies for sustainability.
"The sustainability-linked credit facilities reflect the depth of our commitment to advancing Micron's environmental, social and governance goals," said David Zinsner, senior vice president and chief financial officer at Micron. "In tying our environmental metrics to our financial performance, we aim to achieve positive sustainable impact while taking another step in integrating sustainability into all aspects of our business."
Micron recently underscored its commitments and actionable sustainability efforts in its sixth annual sustainability report, which includes time-bound goals to reduce GHG emission intensity by 75% over 2018 measurements, as well as achieve 75% water conservation and 95% waste diversion globally in 2030. The company also targets sourcing 100% renewable energy across its U.S. manufacturing operations by the end of 2025.
With more than a decade in this space, Crédit Agricole CIB is a pioneer in the environmental, social and governance (ESG) finance market. Crédit Agricole CIB has put ESG matters at the top of its agenda, and it is in the societal pillar of its medium-term plan.
"Promoting growth while respecting the planet and its people is a mindset that we are honored to share with Micron," said Marc-Andre Poirier, chief executive officer of Crédit Agricole CIB Americas. "We worked closely with Micron to identify challenging sustainability issues and set ambitious targets in line with their strong companywide commitment. We are proud to support Micron with their inaugural sustainability-linked financing."
These facilities comprise a five-year $2.5 billion sustainability-linked revolving credit facility, which matures in May 2026, and a nearly $1.2 billion sustainability-linked term loan A, which matures in October 2024. The credit facility agreements refinance Micron's existing revolving credit and term loan A facilities with no impact to cash or debt balances while reducing future interest expense. Both the revolving credit facility and term loan A feature pricing adjustment mechanisms linking Micron's financial pricing to meeting the environmental targets the company has set for greenhouse gas (GHG) emission intensity, waste diversion from landfills and Responsible Business Alliance (RBA) score metrics. Crédit Agricole Corporate and Investment Bank (CIB) served as the sole sustainability structuring agent on both credit facilities.
This transaction reflects Micron's leadership in sustainable financing and positions the company as a top-five corporate sustainability-linked credit facility issuer in the U.S. while reaffirming Crédit Agricole CIB's role as a strategic investment bank and partner to global companies for sustainability.
"The sustainability-linked credit facilities reflect the depth of our commitment to advancing Micron's environmental, social and governance goals," said David Zinsner, senior vice president and chief financial officer at Micron. "In tying our environmental metrics to our financial performance, we aim to achieve positive sustainable impact while taking another step in integrating sustainability into all aspects of our business."
Micron recently underscored its commitments and actionable sustainability efforts in its sixth annual sustainability report, which includes time-bound goals to reduce GHG emission intensity by 75% over 2018 measurements, as well as achieve 75% water conservation and 95% waste diversion globally in 2030. The company also targets sourcing 100% renewable energy across its U.S. manufacturing operations by the end of 2025.
With more than a decade in this space, Crédit Agricole CIB is a pioneer in the environmental, social and governance (ESG) finance market. Crédit Agricole CIB has put ESG matters at the top of its agenda, and it is in the societal pillar of its medium-term plan.
"Promoting growth while respecting the planet and its people is a mindset that we are honored to share with Micron," said Marc-Andre Poirier, chief executive officer of Crédit Agricole CIB Americas. "We worked closely with Micron to identify challenging sustainability issues and set ambitious targets in line with their strong companywide commitment. We are proud to support Micron with their inaugural sustainability-linked financing."
25 Comments on Micron Closes Sustainability-Linked Credit Facilities Totaling Nearly $3.7 Billion
It could be true but I'm just skeptical of any claims thrown out without backing.
www.rigzone.com/news/oil_gas/a/148751/russias_gazprom_says_credit_agricole_cib_to_give_it_739_mm_loan/
au.finance.yahoo.com/news/big-oil-turned-back-alaska-200000191.html
www.bloombergquint.com/onweb/these-are-the-banks-caught-in-the-russia-money-laundering-scandal
There may be more to those articles I am missing, I just skimmed the headlines on mobile and will return to them shortly. Banks issue loans though, and usually for financial reasons, keep that in mind. Loans are not a declaration of friendship.
EDIT: It seems your argument centers on the fact that companies are not issueing loans likewise to oil development in alaskan regions that were previously park territory. There is a reason for this: Oil drilling in the arctic is generally bad for the environment. No one will loan money to a company that does this openly in the present climate, whatever you believe. The worst part of it is that they will willingly loan money to a company that lies and says it doesn't while it blatantly does, like Gazprom, making it all pretty hypocritical.
That's probably your point, yes?
They aren't exactly a bastion of morality, or in it for friendship. They are in it for money.
That's all I'm saying.
I just needed further reading as I initially admitted. Please excuse my skeptic nature here as it seems in the end, you are right.
Edit: actually I just read that yahoo article it absolutely has to do with ANWR, but you’re right about them being one of a million sleazy banks
There’s also the whole “wildlife refuge” part of the debate, but that’s another story.
Source: I researched both sides of this debate for eight years for college and high school debaters. The research overwhelmingly says that drilling in ANWR is undesirable (likely a small reserve and terrible for the environment).
It’d be a PR nightmare for any oil firm, which begs the question — who cares other than people who live in the Cold War? What is this other than jingoistic nationalism?
Again, it is a PR nightmare, largely by non-partisan consensus, difficult area to expand in, US regulations are much more strict than Russia — there are a million reasons that the loan they have there was worse than the one in Russia other than the Russian mob or whatever your contention is
Also what is this doing here? This is tech site, not economics.
But then again, that's btarunr posting, so anything weird and nonsense is possible .
You're on topic, just this entire post is offtheme for the site.
I was just offering my opinion on the pieces relevance. "Cancel culture" need not apply. Glad you enjoy it.