Dunelm secures new sustainability-linked bank facility
Dunelm has secured a £185 million sustainability-linked loan facility, an agreement that could help the homewares retailer slash how much plastic packaging it uses.
The FTSE 250 retailer’s unsecured revolving credit facility is from Barclays, Lloyds, National Westminster Bank, Banco Santander, and Credit Industriel et Commercial.
Dependent on Dunelm’s performance against certain sustainability performance targets, the interest rate on the debt facility could go up or down by up to 2.5 basis points.
The targets will help support some of the chain’s longer-term goals, such as a 20% reduction in plastic packaging of own brand products by 2024.
Other objectives include a 50% reduction in Dunelm’s greenhouse gas emissions by 2030 against a 2019 base.
The loan facility has an initial term of four years, which may be extended by a further two years, subject to lender consent.
It comes at a time when many businesses and investors are increasingly looking at their environmental, social and governance (ESG) credentials.
