Gildan Activewear, a manufacturer of blank apparel, announces it has signed an amended and restated credit agreement in respect of its existing $1 billion revolving credit facility to incorporate sustainability-linked terms.
According to the company, the amendment introduces an annual pricing adjustment based on the achievement of three of Gildan’s Next Generation ESG targets, which were communicated at the beginning of this year.
“Sustainability is a key pillar of our Gildan Sustainable Growth strategy, and this sustainability-linked facility is further evidence of our pledge to making meaningful advancements by 2030 in the areas of climate change, circularity, diversity, equity, and inclusion,” says Rhodri Harries, executive vice president, chief financial and administrative officer at Gildan.
Sustainability-linked revolving credit facility
The amended and restated $1 billion 5-year revolving credit facility includes terms that reduce or increase the borrowing costs based on the company’s annual performance against the following three ESG targets:
- Climate change: The reduction of Gildan’s Scope 1 and Scope 2 GHG emissions by 30% by 2030
- Circularity: 75% of Gildan’s packaging and trims (specific to apparel SKUs) will contain recycled or sustainable materials by 2027
- Diversity, equity, and inclusion: The achievement of gender parity by 2027 for Gildan’s employee group encompassing the director level and above
BMO Financial Group is acting as the lead sustainability structuring agent, and TD Financial Group and CIBC Financial Group are acting as co-lead sustainability structuring agents for Gildan’s sustainability-linked loan.