Canadian-based oil infrastructure company Gibson Energy Inc. announced today that it became the first public energy company in North America to fully transition its principal syndicated revolving credit facility into a sustainability-linked revolving credit facility. Accordingly, the Company is advancing its sustainability goals, going forward with its ESG commitments.
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Gibson Energy on transitioning its credit facility in accordance with its sustainability goals
Today, the Canadian-based oil infrastructure company Gibson Energy Inc. announced it transitioned its principal syndicated revolving credit facility into a sustainability-linked revolving credit facility. Thus, Gibson is now the first public energy company in North America in doing so.
Moreover, through this transition, the Company said it further advanced its sustainability efforts following its ESG (Environmental, Social, and Governance) goals.
Gibson Energy is a Canadian-based oil infrastructure company. Notably, its principal businesses consist of the storage, optimization, processing, and gathering of crude oil and refined products.
Moreover, the Company’s operations focus on its core terminal assets at Hardisty and Edmonton, Alberta. Besides, it includes the Moose Jaw Facility and an infrastructure position in the U.S.
“As part of our efforts to embed the principles of Sustainability and ESG into all aspects of our business, we are very pleased. In fact, we’re not the first amongst our Canadian midstream energy infrastructure peers; but also all public energy companies in North America to fully transition our principal credit facility to a sustainability-linked credit facility;” said Sean Brown, Senior Vice President, and Chief Financial Officer.
Hence, “this is further evidence of our commitment to reaching our Sustainability and ESG targets. Moreover, those are key targets from each of the three pillars of ESG. Furthermore, they will now also directly impact our financing costs.”
Gibson’s ESG Efforts and Targets by 2025
Additionally, “by extending the maturity of our facility to a full five years into 2026; we ensure we maintain access to ample liquidity to continue to execute our business. Also, to fund the debt portion of our growth capital and maintain sufficient additional capacity we may encounter over the next several years.”
Accordingly, the new Sustainability-Linked 5-Year, $750 Million Revolving Credit Facility includes several key terms. For instance, those reduce or increase the borrowing costs as Sustainability and ESG targets are met or missed.
In fact, the performance determinants included in the terms are consistent with Gibson Energy’s recently announced ESG goals and commitments. For instance, these targets are comprised of Environmental; which consists of the reduction of Scope 1 and Scope 2 GHG emissions intensity by 15% by 2025
Also, standing for Social, an increased representation of women in the workforce to 40% – 42%. Furthermore, an increased racial and ethnic minority representation in the workforce to 21% – 23% by 2025
Finally, for Governance, Gibson aims to increase the representation of women on the Board to at least 40%. Also, the Company wants to include at least one member of the Board identifying as a racial or ethnic minority and/or Indigenous by 2025
Indeed, Gibson’s ESG and Sustainability efforts have been recently recognized by MSCI ESG Research LLC. Accordingly, the firm awarded Gibson with an “A.A.” rating. Notably, this rating represents the highest-ranking among the Company’s North American peer group.