A group of seven lenders has provided the five-year facility, which is co-ordinated by Dutch multinational bank Rabobank
Britvic has secured credit facility for its sustainability goals. (Credit: Britvic PLC)
UK-based soft drinks company Britvic has secured up to £400m in credit facility to achieve its sustainability goals.
A group of seven lenders has provided the five-year facility, which has an option for an extension by two years.
Co-ordinated by Dutch multinational bank Rabobank, the facility is subject to the progress Britvic makes on its sustainability targets.
Britvic said that the facility’s margin, however, will be reduced based on the firm’s performance.
Britvic sustainability director Sarah Webster said: “This financing agreement is part of our commitment to embed sustainability at the heart of our business and drive real behaviour change.
“We have made progress against our sustainability ambitions. However, there is more to do and this is a significant commercial milestone in our journey. By linking financing to our goals, we can ensure that every penny we invest is done so with our sustainability targets in mind.”
By 2025, Britvic to make 50% of all plastic bottles in UK and Ireland from rPET
The company’s 2025 sustainability goals include making 50% of all plastic bottles from recycled plastic (rPET) in the UK and Ireland, and 75% of its drinks with either low or no sugar.
Britvic is also planning to achieve a 50% reduction in carbon emissions compared to 2017.
In November 2019, Britvic signed an rPET supply agreement with Esterform Packaging, an independent converter of polyethene terephthalate (PET).
Under the agreement, Esterform will serve as Britvic’s preferred supplier of rPET in the UK and Ireland.
Britvic will invest £5m for the construction of new rPET manufacturing facilities at Esterform’s site in Sherburn, Elmet of the UK.
The move forms part of Britvic’s effort to reduce the use of virgin PET in its packaging, and replace it with rPET, which is made from recycled plastics.
Britvic, a founding signatory of The UK Plastics Pact in 2018, aims to transform the plastic packaging system in the UK.