Xylem recognised for US$1bn revolving credit facility in sustainable finance

Global water technology group Xylem has been recognised for its $1bn revolving credit facility in sustainable finance. 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 (GHGs) across the company’s operations and supply chain, and enabling customers’ carbon footprint reduction with Xylem products.

Xylem established leadership in sustainable financing in 2019 when it executed its $800m revolving credit facility — the first of its kind in the US general industrial sector. In 2020, the company adopted a green finance framework, under which it completed a $1bn 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.”

Claudia Toussaint, senior vice-president, chief people and sustainability officer at Xylem said, “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 will release its 2023 sustainability report in May.

(Image: Unsplash)