In order to achieve DEME’s sustainability objectives in all aspects of its business, the Group undertook the complete transformation of its long-term loan portfolio and converted them all into sustainability-linked loans.
According to DEME, this major commitment underlines their vision of realizing a sustainable future and represents a total loan value of 579 million euros.
Basically, the commercial terms of loans with the Group’s partner banks will now be directly linked to DEME’s sustainability performance in two specific areas:
Key performance indicators (KPIs) will trigger adjustments to interest margins applied to loans.
Commenting on the latest news, Gert Wouters, Head of Structured Finance and Treasury at DEME, said: “The DEME group is once again a pioneer.
“We are proud to be the first company in our industry to introduce these important sustainability goals into all of our long-term financing agreements. In a strong signal to our stakeholders, we demonstrated that we take our sustainability goals into account across our business, supporting them with concrete actions. »
“This is a bold step, and it shows that we are ready to accept the financial consequences that come with it.”
Wim Erally, Senior General Manager Corporate Banking and Facility Management at KBC Bank NV, said: “KBC is proud to have been selected by DEME as its sustainability coordinator to help it integrate sustainability features into its long-term bank financing. term.
“We are building on our existing knowledge and experience to structure and coordinate this sustainability-related financing, guiding DEME in the selection of sustainability KPIs and target setting that ensures material and ambitious targets for DEME. »
In accordance with the Sustainability Linked Loan Principles issued by the Loan Market Association, the transaction was completed on February 7, 2022, with KBC acting as sole sustainability coordinator for DEME.
By transforming existing loans into sustainability-linked loans, lenders agree to lower the interest rate when the company meets its targets against the two sustainability KPIs. If these two objectives are not met, it will lead to a slight increase in the interest rate.
The second ESG KPI includes an objective to increase the percentage of low carbon fuels consumed by the company.
“Again, this is a constant priority for the company and DEME has set itself ambitious targets to reduce emissions and ultimately become climate neutral by 2050. In the meantime, the company aims to reduce greenhouse gas emissions by 40% by 2030 compared to 2008. per work unit,” the company concluded.