Last Updated on Wednesday, 20 July, 2022 at 9:31 am by Andre Camilleri
Melita Limited is converting an existing €20 million revolving credit facility into a sustainability linked credit facility. This means that the interest rate charged by lenders on this facility will be reduced, subject to Melita reaching specific sustainability targets. These targets include a specified reduction in greenhouse gas emissions, and commitments on inclusion, and diversity within the workplace.
Harald Roesch, CEO at Melita Limited, said, “Melita is very focussed on becoming a sustainable and inclusive business. As part of this effort, we are one of the very few Maltese organisations to have formally committed to the United Nations’ Science Based Target Initiative, which aims to achieve the goals of the Paris Climate Agreement. Making this type of binding commitment is the right thing to do but it is also increasingly important from a financing perspective as it reduces reputational risk and improves prospects. This, in turn, is encouraging the banks to offer more favourable terms to companies pursuing sustainability and inclusion, as has happened in this case.”