On May 23, 2024, Lundin Mining Corporation (“Lundin Mining” or the “Company”), a diversified Canadian base metals mining company, successfully amended the terms of US$2.55 billion credit and loan facilities—a US$1.75 billion revolving credit facility and an US$800 million term loan—to incorporate a sustainability-linked loan structure.
This structure incentivizes:
- Reduced Greenhouse Gas (GHG) Emissions: Aiming to reduce Scope 1 and 2 GHG emissions in line with the Company's 2030 target, focusing on electrification, renewable energy, energy efficiency, and low carbon fuels.
- Thriving Communities: Implementing a social science-based community engagement KPI to strengthen community relations, essential for the Company's long-term success and social license to operate.
Lundin Mining collaborated with a syndicate of lenders and Co-Sustainability Structuring Agents—Bank of Montreal, The Bank of Nova Scotia, ING Capital LLC, and Canadian Imperial Bank of Commerce (CIBC)—to establish key performance indicators and sustainability performance targets (SPTs). These targets link the Company's financing strategy to its sustainability strategy, adjusting the interest rate margin based on performance relative to the SPTs and are central to Lundin Mining’s sustainability strategy.
Fasken advised the syndicate of lenders with a team comprised of Thomas Meagher, David Ferris, Gurkirat Batth, Hussein Rehmanji, Ashley Faerberboeck (Paralegal/Law Clerk) and Diane Garrison (Paralegal/Law Clerk).
Jurisdiction
- Ontario
