Coats secures $360m ESG-linked bank refinancing

Industrial thread manufacturer Coats Group announced the completion of a $360m (£262.69m) environmental, social and governance (ESG) linked bank refinancing.

The FTSE 250 firm said the three-year facility, with the ability for two one-year extensions, was secured at competitive market rates, on “substantially similar” terms as its previous facility.

It said it included an embedded ESG component, which would impact the margin based on performance against three of the company's published sustainability targets.

Those targets were a reduction in energy intensity, employee engagement as part of the ‘Great Place To Work’ certification scheme, and the transition to thread made from recycled raw materials.

“We are delighted that the terms of the refinancing highlight Coats' commitment to its sustainability agenda as one of its three strategic pillars, and the good progress the company continues to make towards its 2022 targets,” said chief financial officer Jackie Callaway.

At 1044 BST, shares in Coats Group were down 0.37% at 57.79p.