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Polymetal Receives First Green Loan Under New Green Finance Policy

Russia / Non-ferrous metallurgy

Polymetal has received the first green loan in the Russian mining sector from Societe Generale in the amount of US $ 125 million to finance projects for the transition to a sustainable and low-carbon economy in accordance with the corporate Green Finance Policy.

Polymetal Receives First Green Loan Under New Green Finance Policy

“Our goal is a business model based on the principles of sustainable development, and we are actively investing in energy-saving technologies and efficient management of water resources and waste. By launching the first green loan, we provide our lenders with the opportunity to assist in the implementation of the company's ESG strategy and ensure that the funded green projects and the company's strategy meet the global Sustainable Development Goals, ”said Evgenia Onushchenko, Director of Corporate Finance at Polymetal.

Stephanie Clement de Givry, Head of Global Metals & Metals Finance at Societe Generale, said: “Societe Generale is pleased to help Polymetal once again integrate environmental, social and corporate governance commitments into financial strategy at a new level of quality by providing green loan in accordance with the recently adopted Green Finance Policy. This innovative mining transaction is made possible by integrating sustainability into the company's investment decisions. Societe Generale fully supports Polymetal in reducing its carbon footprint and using resources efficiently.

Societe Generale will provide a 6-year green loan with a 3-year grace period in accordance with the principles of the Policy. The loan term can be extended up to 7 years one year after signing the agreement.

The loan funds are planned to be directed to the following categories of projects that meet the goals of sustainable development and measures to combat climate change: environmentally friendly transport, renewable energy sources, energy efficiency and responsible management of water resources and waste.

Polymetal has set the following 1 targets to tackle global climate change and the transition to a zero waste economy:

  • Reduction in the intensity of greenhouse gas emissions (in 2023, a decrease of 5% compared to 2018);

  • Improving energy efficiency through innovative technologies, including the use of low-carbon and renewable energy sources (in 2025, 7% of electricity will be generated from renewable sources);

  • Transition to dry tailings storage (in 2024, 15% of all tailings generated in a year will be stored dry);

  • Reduction in fresh water consumption per ton of ore processed (by 2023, a decrease of 11% compared to 2018);

  • Annual recycling /reuse of at least 16% of generated waste by 2023.

Polymetal plans to disburse loan proceeds to green projects meeting the Policy's criteria within 24 months of the first draw.

Polymetal's green finance policy is in line with the Credit Market Association (LMA) green finance guidelines. The document was independently evaluated by the Center for International Climate and Environmental Research (CICERO) 2 , which assigned an overall rating of Medium Green out of possible Brown, Light, Medium and Dark Green (Light, Medium, and Dark green), and a corporate governance rating for green finance of Good.

This is the third loan tied to sustainable development indicators in the Company's loan portfolio. As a result of the transaction, the share of responsible financing reached 18% of net debt or US $ 280 million.

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