Barrick links extended $3bn credit facility to how it performs in sustainability

Mark Bristow, CEO, Barrick Gold

BARRICK Gold has extended a $3bn revolving credit facility by a year to 2027, switched the facility’s floating rate mechanism and linked the facility to sustainability linked metrics.

Commenting on the latter, Barrick said the metric were made up of annual envirornmental and social performance targets which would be directly influenced by Barrick’s actions rather than based on external ratings.

The performance targets include Scope 1 and Scope 2 greenhouse gas emissions intensity, water use efficiency and injury frequency rates on its mines.

In terms of this innovation, Barrick may incur positive or negative pricing adjustments on drawn credit spreads and standby fees based on its sustainability performance versus the targets that have been set.

“The extension of the termination date of our undrawn credit facility, combined with our strong balance sheet, highlights the current strength of Barrick’s liquidity, while the establishment of sustainability-linked metrics, along with Barrick’s recently released 2021 Sustainability Report, continues to show Barrick’s commitment to ESG,” said Graham Shuttlework, Barrick CFO.

Barrick announced earlier this month that it would pay a 20 US cents per share first quarter dividend, reflecting the first contribution from a new shareholder return plan unveiled in February.

In terms of the plan, shareholders will receive an additional five cents per quarter dividend if net cash of up to $500m is on the balance sheet and 10 cents if cash of $500m to $1bn is declared. As of end-March, Barrick held cash of $743m.