- WSP Global Inc. (WSP) has tied sustainability targets to its syndicated credit facility
- The arrangement affects a C$1.7 billion-dollar agreement for up to four years
- If the company’s environmental and societal targets are not met, the terms of the credit facility may go up.
- Conversely, if the targets are met the terms may go down.
- The exact percentage-increase of these targets remains unannounced.
- WSP Global Inc. provides management and consultancy services around the world.
- The company has a market cap of C$10.1 billion.
- WSP Global Inc. (WSP) was up 1.73 per cent, with shares currently trading at C$95.30.
WSP Global Inc. (TSX: WSP) has announced today that it is the first service firm in the Americas to include suitability-targets the terms of its credit facility.
This means that the lending terms on C$1.7 billion dollars could increase or decrease depending on whether the company can meet these pre-agreed targets.
This move by the management and consultancy firm is an effort to tie the company’s positive environmental or societal initiatives to real-money consequences and further motivate any targets sets.
The terms were finalised with the help of The Canadian Imperial Bank of Commerce, National Bank Financial and BMO Capital Markets.
The terms of the amendment surround three company-led targets.
Firstly, the company must reduce greenhouse emissions across all operations from 2018-2021.
Secondly the company must increase the percentage of green revenues, revenues which have a positive impact on the environment, by the end of 2021.
Thirdly, WSP must increase the percentage of management positions held by women by the end of 2021.
“We are proud to be challenging the status quo by formally linking sustainability and financing” said Bruno Roy, Chief Financial Officer of WSP.
WSP Global Inc. is one of the largest management and consultancy companies in the world. The company operates in forty countries and has a market cap of over C$10 billion.
Though these three targets have been announced today, the actual value of the targets, as in the percent reduction, has not been announced.
This information may be announced later, as might the plans for renegotiable with the credit facility after 2021.
WSP Global Inc. (WSP) was up 1.73 per cent, with shares currently trading at C$95.30.