Kingfisher signs £550m credit deal tied to sustainability targets

Kingfisher, which owns home improvement brands B&Q and Screwfix, has entered a £550 million three-year credit facility agreement linked to its sustainability and community-based targets.

Under the terms of the new deal, made with a group of the company’s relationship banks, it will benefit from a lower interest rate if it delivers specific targets aligned with the group’s responsible business plan.

The retailer’s commitments include reducing carbon emissions from across its business, products, and supply chain. It also aims to deliver 1.5°C science-based carbon reduction targets by the financial year 2025/26.

Kingfisher is also committed to creating more forests than it uses by 2026. The company’s credit facility target is to reach 100 per cent sustainable wood and paper for its product by the same time, covering all retail banners across the group.

At the moment 80.7 per cent of its wood and paper products are sustainable.
The company said it is also committed to helping over two million people whose housing needs are greatest.

The new credit agreement replaces two existing facilities – £225 million expiring in March 2022 and £550 million, most of which expires in August 2023.

“This revolving credit facility shows our commitment to integrate our Responsible Business principles into all aspects of our business,” said Bernard Bot, Kingfisher’s chief financial officer. “Our Responsible Business plan is an integral part of our Powered by Kingfisher strategy and this facility links our ambitious sustainability and community targets with our financing activities.

Bot added:"We are making great progress with our climate change and 2 community programmes and I look forward to working with all our stakeholders on realising our commitments.”

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