Kingfisher secures GBP550mln facility linked to ESG targets

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Kingfisher PLC (LON:KGF) announced it secured a GBP550mln three-year revolving credit facility linked to sustainability and community-based targets.


Under its terms, which has a duration of three years with the possibility of two one-year extensions, the B&Q and Screwfix owner will benefit from a lower interest rate if it delivers specific targets in line with its Responsible Business plan.


READ: Kingfisher raises guidance but finds the market hard to please


The home improvement retailer has previously pledged to cut CO2 emissions from its business, products and supply chain to keep global warming to 1.5?C by 2026.


It covers the company’s actions to reduce its Scope 1 – emissions from direct fuel use – and Scope 2 – emissions from electricity use within its operations – impacts.


The FTSE 100 group has committed to becoming forest positive by 2026 by creating more forests than it uses, with the goal to reach 100% sustainable wood and paper for its products, covering all retail banners. The current level is 80.7%.


It is also planning to help over 2mln people with housing needs through donations over the next five years. So far, 790,000 people have received funding since 2016.


The new credit facility replaces two existing facilities of GBP225mln and GBP550mln each.


Kingfisher said it has “a long heritage as a responsible business” as it was a founding member of the Forest Stewardship Council when it was established nearly 30 years ago to help the responsible sourcing of wood, as well as the first retailer to label and cut VOCs (volatile organic compounds) in paint in 1998.


It isn’t, however, the first London-listed company to secure banking facilities linked to ESG plans: Joules Group PLC (LON:JOUL) announced earlier this month a similar initiative based on CO2 emissions, manufacturing materials and employee engagement.


Similarly, in February Britvic PLC (LON:BVIC) inked a credit facility pegged to its goals to cut emissions and reduce sugar and plastics use.


Tesco PLC (LON:TSCO) did it last year, also based on emissions, alongside food waste and renewable energy use targets.


Shares in Kingfisher shed 1% to 356.8p on Wednesday morning.


–Adds detail, shares–



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