March 28, 2022
Gildan Announces First Sustainability-Linked Loan
(all amounts are in U.S. dollars except where otherwise indicated)
1 Compare to a 2018 baseline
Montreal, Monday, March 28, 2022 – Gildan Activewear Inc. (GIL: TSX and NYSE) is pleased to announce that it has signed an amended and restated credit agreement in respect of its existing $ 1 billion revolving credit facility to incorporate sustainability-linked terms, underscoring Gildan's strong leadership and commitment towards its environmental, social, and governance (ESG) targets. The amendment introduces an annual pricing adjustment based on the achievement of three of Gildan’s Next Generation ESG targets, which were communicated at the beginning of this year. Gildan is the first Canadian apparel manufacturing company to tie financing costs to the achievement of important ESG targets.
“Sustainability is a key pillar of our Gildan Sustainable Growth strategy, and this sustainability-linked facility is further evidence of our pledge to making meaningful advancements by 2030 in the areas of climate change, circularity, and diversity, equity, and inclusion,” said Rhodri Harries, Executive Vice President, Chief Financial and Administrative Officer at Gildan.
Sustainability-Linked Revolving Credit Facility
The amended and restated $ 1 billion 5-year revolving credit facility includes terms that reduce or increase the borrowing costs based on the Company's annual performance against the following three recently announced ESG targets:
- Climate Change: The reduction of Gildan’s Scope 1 and Scope 2 GHG emissions by 30% by 20301, in alignment with the SBTi and the level of decarbonization required to meet the goals of the Paris Agreement.
- Circularity: 75% of Gildan’s packaging and trims specific to apparel SKUs will contain recycled or sustainable materials by 2027.
- Diversity, equity, and inclusion: The achievement of gender parity by 2027 for Gildan’s employee group encompassing the director level and above.
BMO Financial Group is acting as Lead Sustainability Structuring Agent, and TD Financial Group and CIBC Financial Group are acting as co-Lead Sustainability Structuring Agents for Gildan’s sustainability-linked loan.
Gildan is a leading manufacturer of everyday basic apparel which markets its products in North America, Europe, Asia Pacific, and Latin America, under a diversified portfolio of Company-owned brands, including Gildan®, American Apparel®, Comfort Colors®, GOLDTOE®, Peds®, and under the Under Armour® brand through a sock licensing agreement providing exclusive distribution rights in the United States and Canada. The Company’s product offerings include activewear, underwear and socks, sold to a broad range of customers, including wholesale distributors, screenprinters or embellishers, as well as to retailers that sell to consumers through their physical stores and/or e-commerce platforms, and to global lifestyle brand companies.
Gildan owns and operates vertically integrated, large-scale manufacturing facilities which are primarily located in Central America, the Caribbean, North America, and Bangladesh. Gildan operates with a strong commitment to industry-leading labour, environmental and governance practices throughout its supply chain in accordance with its comprehensive ESG program embedded in the Company's long-term business strategy. More information about the Company and its ESG practices and initiatives can be found at www.gildancorp.com.
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