ImpactAlpha, May 24 — Boise, Idaho-based Micron Technology has closed $3.7 billion in sustainability-linked loans. The computer memory and storage maker will get a discount on interest rates if it cuts greenhouse gas emissions, reduces hazardous waste sent to landfills and meets other corporate sustainability goals.
“In tying our environmental metrics to our financial performance, we aim to achieve positive sustainable impact while taking another step in integrating sustainability into all aspects of our business,” said Micron’s David Zinsner.
The credit facilities, structured by Crédit Agricole Corporate and Investment Bank, include a five-year $2.5 billion line of credit, and a $1.2 billion loan that matures in October 2024.
The volume of sustainability-linked loans reached nearly $120 billion last year, up from $5 billion in 2017, according to Bloomberg.
More than 40 sustainability-linked loans closed in the first two months of 2021, including one of the largest, a $10.1 billion revolving credit facility for Belgian-based Anheuser-Busch InBev.
Micron committed $50 million in cash and short-term investments to an impact strategy managed by RBC Global Asset Management to spur economic growth in Black and other underserved communities across the U.S. (see, “Micron invests $50 million to reduce U.S. racial wealth gap”).