ESG

Newmont announces mining's first sustainability-linked bond

Interest to increase if it misses ESG targets

Staff reporter

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"Newmont will be the first in the mining industry to issue a sustainability-linked bond, representing a further step in aligning its financing strategy with environmental, social and governance [ESG] commitments," it said.

The 2.6% notes are due 2032.

Newmont said the interest rate payable would be increased if the company failed to reach its stated targets - of emissions reductions and achieving a 50% representation of women in senior leadership roles - by 2030.

It's aiming to cut Scope 1 and 2 emissions by 32% from a 2018 baseline, and Scope 3 emissions by 30% from a 2019 baseline, by 2030 according to its first climate strategy announced in June.

Newmont planned to use the net proceeds to repurchase 3.7% notes due 2023, issued by Newmont and subsidiary Goldcorp, plus for working capital and general corporate purchases.

Global sales of sustainability-linked bonds are around $105 billion so far this year, a record and up from just $10 billion the whole of last year, according to data compiled by Bloomberg.

Newmont had entered a $3 billion sustainability-linked revolving credit facility earlier this year, one of the first in the industry.

Its shares closed 2.1% higher yesterday at $55.83, towards the lower end of a one-year range, valuing it at $44.5 billion.

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