Balfour Beatty secures sustainability-linked GBP375mln loan

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Balfour Beatty plc (LSE:BBY) announced it has converted an existing GBP375mln revolving credit facility (RCF) into a sustainability-linked loan.


The infrastructure group said it’s the largest loan of this kind in the UK construction industry to date.


READ: Balfour Beatty hikes dividend after swinging to half-year profit


Under its terms, the FTSE 250 group is incentivised to deliver annual measurable performance improvement in three key areas: carbon emissions, social value generation, and an independent Environmental, Social and Governance (ESG) rating score.


The latter will be determined by Sustainalytics, an ESG research, ratings and data provider for institutional investors and companies.


Performance in these three areas will be monitored during the lifetime of the facility, which is expiring in 2024.


Balfour Beatty will be given a credit margin reduction or increase depending on how it’s doing with the sustainability goals.


Shares dipped 1% to 260p on Wednesday morning.

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