Energy Efficiency, GHG Emissions, Finance  -  September 16, 2022

Anglo American Launches Sustainability-Linked Bond

Anglo American plc issued its first sustainability-linked bond, including performance targets to reduce GHG emissions and fresh water abstraction.

This €745 million bond is the first instrument issued following the publication of Anglo American’s Sustainability Financing Framework, according to a statement. Bond investors will be entitled to a higher final coupon payment should the company not meet these targets:

• Reduce GHG emissions (Scopes 1 and 2) 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 5 jobs off site for every job on site by 2030

The financing mechanism will see a coupon increase of 40bps accruing from September 2031 for each of the selected KPIs that do not achieve its target or if the verification of the target being achieved has not been published.

Anglo American’s Sustainability Financing Framework has been established in accordance with the Sustainability-Linked Bond Principles (SLBP) 2020 administered by ICMA (International Capital Market Association) and the Sustainability-Linked Loan Principles (SLLP) 2022 administered by the LMA (Loan Market Association).