Standard Bank Partners With MPact To Link Sustainable Finance To Their Circular Economy Business Model
Standard Bank Partners With MPact To Link Sustainable Finance To Their Circular Economy Business Model. Standard Bank is proud to announce that it has provided leading paper and plastics packaging manufacturing business MPact sustainability linked facilities to assist in their sustainability journey.
MPact is the largest paper and plastics packaging and recycling business in Southern Africa, with a proven commitment to sustainability and positive ESG outcomes. The company has committed to a 2027 strategy to reduce its energy and water consumption and reduce its carbon emissions footprint, and this transaction is a significant step in its journey. This transaction will enable MPact to realise a true circular economy through its recycling operations.
As the primary banking partner to MPact, Standard Bank leveraged their long-standing relationship with the company and was appointed lead sustainability coordinator and co-mandated lead arranger for the transaction. The bank worked alongside MPact to craft an ESG financing solution that assists the company in a refinancing of their existing term debt facilities, reducing the overall cost of funding to the business and supporting MPact in driving its 5-year sustainability strategy by linking its KPI targets to financial outcomes. The facilities cover a syndicated structure of R2.6 billion with 4 lenders participating, and all facilities have been linked to MPact’s carbon emissions reduction and water consumption reduction targets.
Standard Bank is proud to partner with businesses that operate responsibly and prioritise reducing their impact on the environment. MPact’s integrated business model means that the sustainability targets will create a foundation for a circular economy, as well as align the company’s financing decisions to its stated sustainability target.
