In a first, Barclays’ borrower can reduce interest rate on loan if its sustainability targets are met | GBRI
 

Barclays

In a first of its kind loan in the US, CMS Energy and its subsidiary Consumers Energy entered into $1.4 billion revolving credit facilities from Barclays under which CMS will be able to reduce interest rates on new credit if it meets its sustainability targets.

CMS Energy’s president and CEO Patti Poppe says the company is committed to a “triple bottom line,” where the company’s success is tied to “people, planet and prosperity.” The new credit facility is “where sustainability and financial results go hand-in-hand.”

“From a lender’s perspective, the facilities encourage a company to make its business practices more sustainable by providing a direct financial incentive through the potential for lower financing cost,” Barclays explains. “In addition to the standard pricing grid, the loan structure incorporates a secondary pricing mechanism tied to a sustainability target.”

Read full news here: https://www.environmentalleader.com/2018/06/first-of-its-kind-loan-barclays-borrower-pays-less-if-sustainability-targets-are-met/

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