• The funding, totalling 184 million euros, extends until 2027 and considers two ESG performance indicators: greater incorporation of recycled wood and reduction of work accidents.
• The operation was led by CaixaBank, which coordinated the financing.
Sonae Arauco, one of the world's largest wood solutions companies, has subscribed its first funding linked to its sustainability performance (Sustainability-Linked Loan), amounting to 184 million euros. The interest rate may vary according to two ESG (Environmental, Social and Governance) indicators: increase in the purchase of recycled wood and decrease in work accidents with sick leave.
According to António Castro, Chief Financial Officer at Sonae Arauco: “This funding is in line with Sonae Arauco's strategy and demonstrates that we are committed to sustained growth of our business, in which the health and safety of our employees is our top priority.”
“Linking Sonae Arauco's sustainability performance to its financial performance is a natural step on the path we have been taking to realise our vision of creating wood solutions that improve people's lives and play a relevant role in the climate change challenge”, he adds.
With this funding, Sonae Arauco commits to increase the volume of recycled wood incorporated in its products by 19% by 2026 and also establishes as a target a significant reduction in work accidents with sick leave.
The performance indicators defined have been validated by S&P and are aligned with the Sustainability-Linked Loan Principles issued by the Loan Market Association.
The operation was led by CaixaBank and also involved ABANCA, Caixa Geral de Depósitos, Export Development Canada and The Bank of Nova Scotia.
Sonae Arauco's products retain 3.5 million tonnes of CO2
Last year, with the products it placed on the market, Sonae Arauco was responsible for retaining around 3.5 million tonnes of CO2.
The pillars of the company's activity in terms of sustainable development are based on a circular economy model that revolves around valuing wood, a natural, reusable and recyclable raw material that can be continuously incorporated into the industrial process and has a remarkable capacity to store CO2.
Sonae Arauco's value chain begins with using wood sourced entirely from sustainable and responsibly managed sources (including by-products from the wood industry) and culminates in the reuse and recycling of wood waste, which is also used in the panel’s production.
All the wood used in this process comes from sustainable, certified or controlled sources that are responsibly managed and carefully checked. Thus, Sonae Arauco holds two of the world's leading forest certification systems – PEFC™ (Programme for the Endorsement of Forest Certification Schemes) and FSC® (Forest Stewardship Council®) chain of custody certification (FSC® C104607).
Sonae Arauco currently has an extensive portfolio of wood solutions for the construction, furniture and interior design sector that takes into consideration industrial, functional, quality and design aspects. Examples of these are antibacterial solutions, our fire-resistant and moisture-resistant lines, plus a collection of decorative solutions, with unique looks and finishes, and an integrated system of wood construction solutions that meets the challenges of sustainable construction.