Gildan Announces First Sustainability-Linked Loan
March 28 2022 - 2:45PM
Gildan Activewear Inc. (GIL: TSX and NYSE) is pleased to announce
that it has signed an amended and restated credit agreement in
respect of its existing $ 1 billion revolving credit facility to
incorporate sustainability-linked terms, underscoring Gildan's
strong leadership and commitment towards its environmental, social,
and governance (ESG) targets. The amendment introduces an annual
pricing adjustment based on the achievement of three of Gildan’s
Next Generation ESG targets, which were communicated at the
beginning of this year. Gildan is the first Canadian apparel
manufacturing company to tie financing costs to the achievement of
important ESG targets.
“Sustainability is a key pillar of our Gildan
Sustainable Growth strategy, and this sustainability-linked
facility is further evidence of our pledge to making meaningful
advancements by 2030 in the areas of climate change, circularity,
and diversity, equity, and inclusion,” said Rhodri Harries,
Executive Vice President, Chief Financial and Administrative
Officer at Gildan.
Sustainability-Linked Revolving Credit
Facility
The amended and restated $ 1 billion 5-year
revolving credit facility includes terms that reduce or increase
the borrowing costs based on the Company's annual performance
against the following three recently announced ESG targets:
- Climate Change: The reduction of Gildan’s
Scope 1 and Scope 2 GHG emissions by 30% by 20301, in
alignment with the SBTi and the level of decarbonization required
to meet the goals of the Paris Agreement.
- Circularity: 75% of Gildan’s packaging and
trims specific to apparel SKUs will contain recycled or sustainable
materials by 2027.
- Diversity, equity, and inclusion: The
achievement of gender parity by 2027 for Gildan’s employee group
encompassing the director level and above.
BMO Financial Group is acting as Lead
Sustainability Structuring Agent, and TD Financial Group and CIBC
Financial Group are acting as co-Lead Sustainability Structuring
Agents for Gildan’s sustainability-linked loan.
About Gildan Gildan is a
leading manufacturer of everyday basic apparel which markets its
products in North America, Europe, Asia Pacific, and Latin America,
under a diversified portfolio of Company-owned brands, including
Gildan®, American Apparel®, Comfort Colors®, GOLDTOE®, Peds®, and
under the Under Armour® brand through a sock licensing agreement
providing exclusive distribution rights in the United States and
Canada. The Company’s product offerings include activewear,
underwear and socks, sold to a broad range of customers, including
wholesale distributors, screenprinters or embellishers, as well as
to retailers that sell to consumers through their physical stores
and/or e-commerce platforms, and to global lifestyle brand
companies.
Gildan owns and operates vertically integrated,
large-scale manufacturing facilities which are primarily located in
Central America, the Caribbean, North America, and Bangladesh.
Gildan operates with a strong commitment to industry-leading
labour, environmental and governance practices throughout its
supply chain in accordance with its comprehensive ESG program
embedded in the Company's long-term business strategy. More
information about the Company and its ESG practices and initiatives
can be found at www.gildancorp.com.
Investor inquiries: Sophie Argiriou Vice
President, Investor Communications (514)
343-8815 sargiriou@gildan.com |
Media inquiries: Genevieve
Gosselin Director, Global Communications and Corporate
Marketing(514) 343-8814 ggosselin@gildan.com |
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