Anheuser-Busch InBev SA / NV, maker of the Budweiser and Stella Artois beer brands, signed a US $ 10.1 billion credit facility that costs more to service if the company does not meet a set of targets sustainable development.

This is the largest ESG loan ever, narrowly beating a record set by Royal Dutch Shell Plc with a transaction of US $ 10 billion at the end of 2019. The deal also makes the Belgian brewer the largest user of linked loans sustainable development, a category that barely existed. before 2017.

The new revolving credit facility replaces an earlier line of finance and links interest margins to the achievement of targets for water efficiency, recycled packaging, use of renewable energy and emissions, the company said Thursday.

AB InBev’s new deal nearly doubles the global total of environmental, social and governance loans for this year, which, at US $ 12 billion, was already 71% ahead of the same period in 2020. Annual sales have increased. exceeded US $ 100 billion since 2019.

Recent high-profile sustainability-related corporate loan deals include a facility for upscale Italian fashion house Prada SpA earlier this month that tied margins to recycling and self-generated energy.

AB InBev recently set a series of sustainability goals for 2025. All of its electricity consumption will come from renewable sources and greenhouse gas emissions will be reduced by 25%, according to its website. It also aims to manufacture all packaging for its products from predominantly recycled content, starting from a baseline of 46%.

According to the company’s most recent annual report, by 2019, it had achieved a 9.39% reduction in water consumption and a 6.9% drop in greenhouse emissions since 2017. It also achieved said 61% of electricity comes from renewable sources.

The new loan facility, meanwhile, has a term of five years and can be extended for two years, according to the company’s statement.

AB InBev has already established benchmarks in the credit market. Five years ago, it sold Europe’s largest corporate bond, an offer of € 13.25 billion (US $ 16 billion) of notes over six maturities to fund its purchase of SABMiller.

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