Innovative $1 Billion Credit Facility Ties Interest Rates to Sustainability Performance
WASHINGTON--(BUSINESS WIRE)--Apr. 18, 2024--
Global water technology leader Xylem (NYSE: XYL) has been recognized for excellence in sustainable finance for its $1 billion Revolving Credit Facility. Awarded Sustainability-linked Loan of the Year (Americas) by Environmental Finance magazine, the credit facility ties the facility fee and interest rates to Xylem’s performance against its 2025 sustainability goals.
Targets include measuring and reducing greenhouse gas emissions across the company’s operations and supply chain, and enabling customers’ carbon footprint reduction with Xylem products.
“Our sustainability performance is most meaningful when it enables our customers and partners to improve their sustainability outcomes,” said Claudia Toussaint, Senior Vice President, Chief People and Sustainability Officer at Xylem. “In addition to addressing our company’s footprint, we see enormous opportunity to advance customers’ sustainability progress through technology. In doing so, we drive value for our customers and their communities, and for our capital market participants.”
Xylem established leadership in sustainable financing in 2019 when it executed its $800 million Revolving Credit Facility – the first of its kind in the U.S. General Industrial Sector. In 2020, the company adopted a Green Finance Framework, under which it completed a $1 billion green bond offering. The proceeds of the bond were allocated to green projects that improve water accessibility, water affordability, and water systems resilience. In 2021, Xylem launched an ESG-linked demand deposit account with Goldman Sachs, tying the interest earned on deposits to progress against its 2025 sustainability goals.
Environmental Finance commended Xylem for its comprehensive supply chain impact and overall sustainability progress. ING, one of a syndicate of lenders that arranged the credit facility, also noted the company’s sustainability leadership.
“Xylem is at the leading edge of sustainability, and this award is a testament to that,” Ana Carolina Oliveira, Head of Sustainable Finance Americas at ING, said. “The company continues to raise the bar, increase ambition, and deliver positive impacts at the corporate, supplier, and customer levels.”
Xylem will release its 2023 Sustainability Report in May. For more information, visit: https://www.xylem.com/en-us/sustainability/
About Xylem
Xylem (XYL) is a leading global water technology company committed to solving the world’s critical water challenges with innovation and expertise. Our 23,000 diverse employees delivered combined pro forma revenue of $8.1 billion in 2023. We are creating a more sustainable world by enabling our customers to optimize water and resource management and helping communities in more than 150 countries become water-secure. Join us at www.xylem.com and Let’s Solve Water.
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Houston Spencer
+1 (914) 323-5723
Houston.Spencer@xylem.com
Source: Xylem Inc.