Wholly-owned subsidiary of diversified gold producer Nordgold, Celtic Resources, has entered into a two-year $100-million environment, social and corporate governance- (ESG-) linked revolving credit facility with a group of international banks.
Nordgold intends to use the proceeds of the facility for general corporate purposes.
The margin under the loan is directly linked to Nordgold’s EcoVadis ESG rating.
The new unsecured revolving credit facility is guaranteed by certain operating units of Nordgold.
The syndicated facility was arranged by mandated lead arrangers and bookrunners ING Bank, Deutsche Bank (Amsterdam branch) and AO Raiffeisenbank; ING Bank acting as sustainability coordinator, while Deutsche Bank (London branch) was appointed as facility agent.
Nordgold CEO Nikolai Zelenski says the miner is making “significant strides” in rapidly advancing its ESG performance, not least having recently committed to achieving net zero carbon dioxide emissions by 2050, in support of the objectives of the Paris Agreement.
“Strong ESG principles are central to our ethos as a business and it is only right to extend these principles directly into our financing strategy.”