New Sustainability-Linked Bank Facility
Dunelm Group plc ('Dunelm' or 'the 'Company'), the UK's leading homewares retailer, announces that it has agreed and signed a £185 million sustainability-linked unsecured revolving credit facility ('RCF') from Barclays Bank PLC, Lloyds Bank Plc, National Westminster Bank PLC, Banco Santander, S.A., London Branch and Credit Industriel et Commercial.
The facility has an initial term of four years, which may be extended by a maximum of a further two years at Dunelm's request, subject to lender consent.
The RCF incorporates four sustainability-linked performance targets which align with our ambitious sustainability plans, including our commitment to pursue a Net Zero Pathway. These include annual targets which support delivery of the following long term objectives:
- 50% reduction in Dunelm's greenhouse gas emissions by 2030 against a 2019 base, in line with the Science Based Targets Initiative 1.5 degrees scenario;
- All own brand cotton products to meet Dunelm's 'More Responsibly Sourced' standard by 2025;
- 20% reduction in plastic packaging of own brand products by 2024; and
- Provision of a customer take-back service for 50% of our products by 2024.
Dunelm's performance against the sustainability performance targets will be verified by an independent external assurance provider and published in the Group's annual report. Dependent on performance against the targets, there will be a 2.5bps premium or reduction to the base margin.
The RCF is Dunelm's first sustainability-linked loan facility and replaces the Group's existing RCF, which was due to expire in March 2023.
National Westminster Bank PLC acted as Documentation Coordinator and Barclays Bank PLC acted as Sustainability Coordinator for the new facility.
Laura Carr, Dunelm's Chief Financial Officer said:
"Our sustainability plans have already taken a big leap forward as we continue to pursue our ambition of being sustainable in everything we do.
"We are delighted to further demonstrate our commitment with this new sustainability linked revolving credit facility, which is clearly aligned to our Net Zero Pathway.
"We appreciate the support of our banking partners and their alignment with our sustainability ambitions.