Market Overview

BNP Paribas Closes First Environment-Linked RCF in Latin America with Empresas CMPC


BNP Paribas, a premier global bank, today announced that it has closed a $100 million syndicated Revolving Credit Facility ("RCF") structured as a sustainability-linked loan ("SLL") with Empresas CMPC S.A. ("CMPC" or the "Company"), a Chilean pulp and paper company. BNP Paribas, as Joint Lead Arranger and Sole Sustainability Coordinator, led the group of banks involved in the transaction, and will be the Administrative Agent of the facility.

This is the first SLL for CMPC and the first for BNP Paribas in Latin America. It is also the first SLL RCF in Chile with comprehensive environmental Key Performance Indicators ("KPIs"). The RCF includes four environmental sustainability performance targets as described below:

  1. Greenhouse gas emissions;
  2. Industrial water use;
  3. Industrial waste to landfill;
  4. Area for protection, conservation, and restoration

The recent launch of the UN-backed Taskforce for Nature-related Financial Disclosures (TNFD), of which BNP Paribas is part of, is reinforcing the need to address biodiversity loss and manage associated nature related risks. The aforementioned KPIs align with tackling this objective, along with CMPC's public corporate sustainability goals, and cover a broad range of key sustainability issues for CMPC and the pulp & paper industry as a whole, motivating the Company to outperform holistically. The SLL also offers incentives to achieve results for the Company in line and beyond publicly expressed commitments.

"With our stated purpose to accompany our clients on their journey to a more sustainable future by creating sustainable financing solutions, we are delighted to advise CMPC in their comprehensive SLL. This transaction highlights the positive role sustainable finance can play in reinforcing a holistic approach to sustainable forest management so that CMPC can continue to build on their already impressive sustainability and business ambitions," said Florence Pourchet, Head of CIB Latin America at BNP Paribas, who also oversees the bank's Sustainable Finance strategy in the Americas.

BNP Paribas has acted as Sustainability Coordinator or Sustainability Structuring Agent in a number of sustainable finance transactions this year. In late May 2020, Corporación Andina de Fomento (CAF), the Development Bank of Latin America, issued Latin America's first Covid-19 Response Bond, with BNP Paribas acting as lead bookrunner. The €700 million five-year social bond aims to support its member countries' Covid-19-related relief and recovery costs.

In North America, the bank closed a sustainability-linked loan with JetBlue Airways in February 2020 via an amendment to its existing Senior Secured Revolving Credit Facility – the first sustainability-linked RCF for the airline industry. In the same month, it closed another sustainability-linked syndicated credit facility in Canada with WSP Global and in January 2020 it closed a bi-lateral, incentive-linked corporate RCF with Brookfield Renewable Partners in Canada. In EMEA, the bank closed the largest ever ESG-linked Subscription Credit Facility with EQT, a Stockholm-based investor, linking responsible investment metrics with the private equity (PE) space.

About BNP Paribas

BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 71 countries, with approximately 199,000 employees, of which more than 151,000 are in Europe. The Group has key positions in its three main activities: Domestic Markets and International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors. The Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realize their projects through solutions spanning financing, investment, savings and protection insurance.

In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the European leader in consumer lending.

BNP Paribas is rolling out its integrated retail-banking model in Mediterranean countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Institutional Banking and International Financial Services activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific.

The contents of this press release are not intended to constitute an offer of sale of securities by BNP Paribas Securities Corp.

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