Green and Sustainable Finance

Polymetal uses sustainable financial instruments such as green loans and ESG-linked loans to ensure responsible financing which aligns capital with the company’s strategy and strong ESG performance. Polymetal’s lenders and investors can participate in our sustainability goals.

«Sustainability is the cornerstone of Polymetal’s business model. Green financing will reinforce our determination to accelerate transition to a low-carbon economy and safer environment», said Vitaly Nesis, Group CEO of Polymetal.

The loan agreed by Polymetal and Societe Generale in October 2020 is the first Green Loan in the Russian metals and mining industry. Based on the Company’s Green Financing Framework it will support Polymetal transition to a sustainable and low-emissions economy.

$125 million, 6-year tenor with a 3-year grace period, the loan can be automatically extended to 7 years on the first anniversary of signing.

This is the third ESG-related loan in the Company’s credit portfolio. Earlier, Polymetal raised two sustainability-linked credit facilities with one based on ESG KPIs and the other on sustainability rating from Sustainalytiсs.

The share of sustainability instruments now reaches 18% of net debt (as of 1 October 2020) or US$ 280 million in total.

Green financing framework pdf (1.7 Mb)

The Green Financing Framework is a standard compiling principles of green financing that can be applied to a number of potential sources of funding and aims at facilitating transparency, disclosure procedures, integrity and quality in Polymetal’s green loans for interested lenders, investors and other stakeholders. The framework establishes the categories and criteria for projects eligible for green financing, the approach to project selection and evaluation, the principles of proceeds allocation and reporting standards.

The funds raised via Green Financing Framework will be exclusively used to finance and/or refinance green projects, which fall into the following eligible categories: clean transportation projects, renewable energy projects, energy efficiency, sustainable water management and pollution prevention and control. The green projects will be verified for compliance with the eligibility criteria and relevant Sustainable Development Goals defined in the Green Financing Framework.

The Green Financing Framework is based on and in line with the LMA’s Green Loan Principles 2018. Polymetal has obtained the second opinion on the Framework from Centre for International Climate and Environmental Research («CICERO»). Within CICERO Shades of Green, Polymetal’s Green Financing Framework was rated «Medium Green» (out of possible brown, light, medium and dark green) and received a governance score of «Good» (out of possible Excellent, Good and Fair).

Green Financing Second Opinion pdf (604.66 Kb)

Polymetal commits to publish the Green Loan Report on an annual basis until the full allocation of green financing proceeds, and on a timely basis upon material changes of projects. The Green Loan Report will consist of information on the allocation of proceeds and on environmental benefits a green project is expected to achieve. The allocation reporting will be audited at the end of the utilisation period.

2020 2019 2018