CMS Energy and its primary subsidiary, Consumers Energy (collectively CMS) have entered the first syndicated sustainability-linked revolving credit facilities for a U.S. borrower. The aggregate $1.4 billion of new credit facilities allows CMS to reduce its interest rate by meeting targets related to environmental sustainability, specifically renewable-energy generation.
“We believe a company can serve more than the bottom line. We are committed to a triple bottom line that’s measured by our actions to support people, planet, and prosperity,” said Patti Poppe, CMS Energy’s president and chief executive officer. “We are excited to be a trendsetter in the United States entering an innovative credit facility where sustainability and financial results go hand-in-hand.”
CMS Energy has announced clean energy goals that include zero coal used to generate electricity by 2040; reducing carbon emissions by 80% by 2040; and meeting a renewable-energy goal of more than 40% by 2040.
“Our company has a proud history of leaving it better than we found it, and we are confident that our new clean-energy goals will support our commitment to deliver consistent, industry-leading financial performance,” Poppe said.
Barclays, J.P. Morgan, MUFG, Mizuho, and BofA Merrill Lynch acted as Joint Lead Arrangers for the facilities. Barclays acted as Sustainability Structuring Agent.