Finance, Industrial - July 18, 2023
IMTT Launches Inaugural Sustainability-Linked Loan Facility
International-Matex Tank Terminals, a company that handles and stores bulk liquid products, especially energy transition fuels, feedstocks and petrochemicals, announced that ITT Holdings LLC amended its existing revolving credit facility to include incentive pricing terms for achieving various sustainability performance targets.
The facility represents the company’s inaugural sustainability-linked loan and is issued under IMTT's recently developed sustainability-linked issuance framework. The framework outlines key performance indicators related to environmental and social factors, including i) the percentage of new capital expenditures related to increasing IMTT’s ability to store and handle renewable and low-carbon products including but not limited to renewable diesel, biodiesel, hydrogen, blue and green ammonia, sustainable aviation fuels, and the feedstocks used to produce these products; and ii) supplier diversity.
“We are reshaping our portfolio so that over half of IMTT’s revenue in 2023 will be generated from the handling of non-petroleum products, such as renewable diesel feedstocks, renewable diesel, vegetable and tropical oils, and chemicals. Our Greener and Cleaner strategy is working, and we anticipate continuing to grow our non-petroleum share of revenue over the next several years through deployment of capital for new projects supporting the energy transition. The continued support from our lenders will allow us to continue to develop and execute the projects that support these ambitions,” said Carlin Conner, Chairman and CEO of IMTT in a statement. “Additionally, we are committed to creating opportunities for vendors and suppliers that are capable, experienced and share our ESG goals.”
Sustainable Fitch has provided a second-party opinion that verifies that the framework is aligned with the loan syndications and Trading Association Sustainability-Linked Loan Principles (2023).