BMO Helps Sandstorm Gold Royalties Meet ESG Goals With Sustainability Loan

  • Sandstorm is the first precious metals royalty company and one of the first North American metals and mining companies to have a structured sustainability loan with internal and personalized KPIs.
  • New financing arrangement in line with BMO’s commitment to a sustainable future and BMO’s ambition to be the primary partner of its clients in the transition to a net zero world

TORONTO, October 6, 2021 / PRNewswire / – BMO Financial Group (TSX: BMO) (NYSE: BMO), acting as sole sustainability structuring agent, announced a funding agreement with royalty company Sandstorm Gold Ltd. (“Sandstorm” or “Sandstorm Gold Royalties”). Adopting a sustainability lending structure as part of its 2021 revolving credit facility renewal allows Sandstorm to link its ESG strategy and cost of capital, strengthening and demonstrating its commitment to sustainability.

The agreement introduces an incentive mechanism for adjusting margins linked to Sandstorm’s commitment to continue to create a strong diversity of the workforce and to maintain its strong ESG governance, while fostering developments in terms of development. sustainability and climate-related disclosure in the mining and metals industry through its investments.

“We are delighted to announce that Sandstorm is the first royalty company to have a sustainability goal credit facility. With this credit agreement, Sandstorm is helping usher in a new era of corporate lending that benefits shareholders while promoting corporate responsibility, ”said Erfan Kazemi, Chief Financial Officer of Sandstorm.

“We are delighted to support Sandstorm’s environmental and social sustainability goals with this new funding. in business and life, and how we work with clients across industries to meet their needs and work towards a more sustainable future ”, declared Jonathan hackett, Head, Sustainable Finance, BMO Capital Markets. “Our experience as a global leader in metals and mining, combined with our expertise in sustainable finance, makes us the ideal partner to help Sandstorm achieve its goals. “

Sustainability-linked revolving credit facility

The new $ 350 million four-year revolving sustainability credit facility includes terms that reduce or increase borrowing costs when sustainability performance goals are met or not. Determinants of performance include:

  • External ESG rating: Maintain or improve an ESG rating of “A” from MSCI Inc.
  • Diversity and inclusion: Increase diversity in leadership to 50 percent
  • Alignment with ESG reporting standards: Increase the percentage of asset alignment with sustainability and climate reporting standards and frameworks

BMO continues to work closely with its customers as they transition to a more sustainable future as part of its commitment to deploy 300 billion dollars in sustainable lending and underwriting for businesses seeking sustainable results by 2025.

In December 2019, BMO granted Maple Leaf Foods Inc. the first sustainability loan in Canada. Among other firsts, BMO last February granted the first labeled green loan in Canadian history to Atlantic Packaging to finance a new 100% recycled containerboard factory and worked with Atlantic Packaging to establish a green financing framework. . In May, he provided an SLL to Gibson Energy to help the company meet its ESG goals; in doing so, Gibson became the first North American public energy company to fully transform its primary syndicated revolving credit facility into a sustainability revolving credit facility.

Being the main partner of its clients in the transition to a net zero world is also aligned with the creation by BMO of a group dedicated to the energy transition in June 2021 as well as the brand new BMO Climate Institute, to assist customers in their search for opportunities driven by the growing momentum of the changing global economy in energy production and consumption.

BMO’s leadership in sustainability has been recognized in numerous rankings:

  • Ranked 15e to The Wall Street Journal2020 list of the 100 most sustainably managed companies in the world, third overall on share capital – BMO was the only North American bank included
  • First North American Bank among Corporate Knights’ 100 Most Sustainable Companies in the World in 2021 for the second year in a row
  • Ranked in the top 10 percent of global banks on the 2020 Dow Jones Sustainability Index, and the best North American bank
  • Got an A- on the 2020 CDP Climate Change Disclosure
  • Ethisphere® Institute of the World’s Most Ethical Companies 2020 List®
  • Corporate Knights 2021 The 50 best corporate citizens in Canada
  • Co-winner of the Lead Manager of the Year 2021 from Environmental Finance, Social Obligations category – Local authority / Municipality

To learn more about BMO’s commitment to a sustainable future, please see the bank’s Sustainability Report. To learn more about sustainable finance at BMO, click here. To learn more about BMO’s climate ambition, visit our Climate page.

About BMO Financial Group
Serving clients for 200+ years, BMO is a highly diversified financial services provider – the 8th largest bank in terms of assets, North America. With total assets of $ 971 billion from July 31, 2021, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to over 12 million clients and operates through the through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.

SOURCE BMO Financial Group

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