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Clifford Chance advises Societe Generale on a sustainability-linked credit facility for Polymetal

20 September 2019

Clifford Chance advises Societe Generale on a sustainability-linked credit facility for Polymetal

Clifford Chance Moscow team has advised Societe Generale, one of the largest European financial services groups, on a bilateral sustainability-linked credit facility of up to US$75 million for Polymetal, a top-20 global gold producer and top-5 global silver producer with assets in Russia and Kazakhstan.

The facility incorporates an adjustment mechanism which links the pricing of the loan to five of Polymetal’s key environmental and social indicators: (1) implementing a comprehensive climate management system; (2) ensuring tailings storage safety; (3) reducing fresh water use; (4) maintaining occupational health and safety; and (5) supporting and engaging local communities.

The above‑listed KPIs will be monitored annually. Depending on the company’s performance during each yearly period, the loan interest rate may decrease, stay unchanged or increase.

Vladimir Barbolin, banking & finance partner at Clifford Chance Moscow, noted: “We are proud to be involved and to help Societe Generale and Polymetal to document a deal like this where social and environmental KPIs become an important part of deal economics and legal documentation”.

The Clifford Chance banking & finance team was led by partner Vladimir Barbolin, supported by counsel Igor Bichenkov and associate Arina Skrebkova.

For additional information please check the Polymetal press-release.