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JOHANNESBURG - AECI Limited, a South African chemicals company, has announced that it has met specific sustainability performance targets (SPTs) for the financial year ended December 31, 2024. As a result, the initial margin applied to its senior unsecured floating rate notes will remain unchanged for the upcoming interest period starting June 11, 2025.
The company issued a statement notifying holders of its ZAR535 million notes due September 11, 2026 (AECI05), and ZAR465 million notes due September 11, 2028 (AECI06), that the Sustainability Compliance Certificate is now available on their website. This certificate is a testament to AECI’s commitment to sustainability, as outlined in the amended and restated applicable pricing supplements under its ZAR5 billion Domestic Medium Term Note Programme.
AECI’s achievement of the sustainability targets is reflected in the margins for the notes, which will be 3 Month ZAR-JIBAR plus 139 basis points for AECI05 and plus 150 basis points for AECI06 for the interest period commencing on June 11. The adherence to these sustainability goals ensures that the company maintains favorable borrowing costs, which is an essential aspect of its financial strategy.
The Sustainability Assurance Report, which accompanies the certificate and provides detailed information on the company’s sustainability performance, is also available for review by investors and stakeholders on AECI’s website.
This announcement is in line with Condition 20 (Notices) of the Terms and Conditions of the notes, which stipulates the obligations of the company to keep noteholders informed about compliance with sustainability-related conditions. The interest rates on these notes are tied to AECI’s sustainability performance, which underscores the growing trend of integrating environmental, social, and governance (ESG) factors into corporate financing.
AECI’s success in meeting its SPTs indicates a positive step towards its long-term commitment to sustainable business practices. This news is based on a press release statement provided by the company.
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