Pernod Ricard has announced the signing of its first sustainability-linked loan totalling €2.1 billion, in order to refinance in advance an existing facility expiring June 2024.

This sustainability-linked refinancing facility is linked to two environmental commitments:

1. Reduction in absolute greenhouse gas emissions (Scopes 1 & 2) on operated sites; and

2. Reduction of water consumption per unit produced at its distilleries.

These two key performance indicators, included in Pernod Ricard’s 2022 Sustainability-Linked Financing Framework, address stringent sustainability challenges for the company and the industry.

The transaction is illustrative of Pernod Ricard’s commitment to integrate sustainability into its daily operations and financing strategy, in-line with the Group’s Sustainability & Responsibility (S&R) Roadmap.

The Group has previously launched two sustainability-linked bond issues in 2022, linked to these same key performance indicators.

The new credit facility has been committed to by 22 banks. It has an initial April 2028 maturity and includes two one-year extension options.

For this transaction, BNP Paribas acted as coordinator and documentation agent. Crédit Agricole CIB acted as ESG coordinator.

This refinancing has been secured at attractive conditions and demonstrates the confidence of Pernod Ricard's banking partners.

Vanessa Wright, Chief Sustainability Officer, declares: “As part of our Sustainability & Responsibility roadmap 'Good Times from a Good Place', we're committed to preserving the world's natural resources by reducing carbon emissions, water consumption and waste throughout our value chain. The Group's recent sustainability-linked facility is another demonstration of our drive to reduce our environmental footprint and protect the natural ecosystems, where we source all the ingredients that make our iconic brands.”