UPM is one of the first companies to link the pricing mechanism of a syndicated revolving credit facility (RCF) to both biodiversity and climate targets. The margin of the RCF is tied to two key performance indicators (KPIs).
“Connecting UPM’s sustainability performance to our financing demonstrates the importance of responsible business practises to our long-term value creation. Sustainable forest management plays an important role in mitigating climate change, as it ensures material long-term CO2 sequestration and improves adaptation to global warming. Enhancing biodiversity is not only about preserving forests but is also a crucial element in sustainable industrial use, taking into account a wide range of flora and fauna. UPM is committed to achieving a net positive impact on biodiversity and we have developed indicators and methods to monitor it,” says Tapio Korpeinen, CFO, UPM.
BNP Paribas acted as a sustainability coordinator for the facility. “Promoting biodiversity through finance is an essential lever in tackling the climate crisis. As a bank committed to innovation towards the transition, we are proud to support UPM in their strategy to accelerate sustainable forest management through finance. This transaction highlights the positive role of sustainable finance to link to progressive decarbonisation targets, which can jointly protect ecosystems,” says Marjo Liukkonen Lazaro, Head of BNP Paribas Finland.
The EUR 750 million credit facility is the first step in building the funding base for UPM's significant transformation projects. The five-year facility has two one-year-extension options..
Read more about our biodiversity programme and the RCF related key performance indicators.
For further information please contact:
Kenneth Råman, SVP, Treasury and Risk Management, UPM, tel. +358 400 477 287 (about RCF)
Tuomas Niemi, Manager, Standards, UPM Responsibility, tel. +358 40 738 8137 (about key performance indicators)
TAPPI
http://www.tappi.org/