The deal sees Senior underpin its strong ESG commitments and its aim to achieve net zero by 2050, with its first sustainability linked facility. The green funding links to the business achieving a 30 per cent reduction in its carbon emissions and increasing recycling rates, in line with the Group’s 2025 Sustainability Targets.
HSBC UK acted as sustainability coordinator and a lead lender with four other banks in the syndicate.
Senior designs and manufactures high technology components and systems for the principal original equipment manufacturers in the worldwide aerospace, defence, land vehicle and power and energy markets. In 2020 Senior became the first company in its sector to have its scope 1, 2 and 3 greenhouse emissions reduction targets approved and verified by the Science Based Target Initiative (“SBTi”), and in 2021 the company maintained its CDP leadership rating of A- for its climate disclosure.
In addition to general corporate funding, the facility will be used to support Senior’s green aims through investment in low carbon energy and monitoring; delivering pilot programmes to identify best practice; and training staff across Senior’s 26 operating business in 12 countries.
Tom Bindloss, Head of Treasury for Senior Plc, said: “We have made strong commitments to sustainability across our business as part of Senior’s focus on protecting people and the environment. As an industry leader, we have set ourselves challenging targets so it makes sense to extend these into our funding requirements. HSBC UK and our banking partners have played a crucial role in enabling that to happen.”
Simon Atter, Relationship Director, Structured Finance for HSBC UK, added: “Senior’s sustainability commitments are impressive. Senior was the first business in the worldwide aerospace sector to receive a Science Based Targets Initiative verified pathway to reducing emissions and it continues to demonstrate a leading approach to emissions and waste reduction. We were delighted to support the team with Senior’s first sustainability linked loan, embedding the business’s wider ESG approach into its funding arrangements.”
