Anglo-American issues first sustainability-linked bond

Anglo American has issued its first sustainability-linked bond, including performance targets to reduce greenhouse gas emissions and freshwater abstraction, as well as support job creation in host communities.
It said the €745 million bond is the first instrument issued following the publication of its Sustainability Financing Framework.
The Sustainability Financing Framework covers bonds, loans and other financing instruments and links the company’s funding requirements to stretch goals set out in its Sustainable Mining Plan.
Bond investors will be entitled to a higher final coupon payment should the company fail to reduce absolute greenhouse gas emissions by 30% by 2030 compared to 2016, reduce the abstraction of fresh water in water-scarce areas by 50% by 2030 compared to 2015 and support five jobs off-site for every job on site by 2030.
Anglo said the financing mechanism will see a coupon increase of 40 basis points accruing from September 2031 for each of the selected key performance indicators that do not achieve its target or if the verification of the target being achieved has not been published.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished