Specialist tool and plant hire group Kiloutou has arranged its first sustainability-linked Loan with LCL. The facility marks Kiloutou’s first step in the sustainable finance sector.
Arranged with its long-standing partner LCL, the facility incorporates Kiloutou’s CSR commitments into its financial documentation, since the margin it pays will depend on its performance according to certain ESG (Environmental, Social and Governance) criteria. That performance will be measured through five indicators: one external rating and four internal indicators reflecting the group’s environmental and social ambitions in terms of its vehicle fleet, investments in equipment powered by alternative energy systems, representation of women in its management and promotion of employee share ownership.
The €10 million, 5-year facility will help to fund the group’s fleet Capex.
Since it was founded in 1980, the Kiloutou group has sought to achieve strong financial performance while looking after the environment and its people. The equipment rental industry is based on pooling resources and is a key part of the sharing and sustainability economy. The Kiloutou group is committed to ensuring that equipment rental is a responsible and sustainable industry: Kiloutou has been working to fight climate change since 2010 and has stepped up its environmental transformation efforts in 2021. In early January, it announced its ambition of reducing direct CO2 emissions by 40% between 2018 and 2030 and of becoming carbon-neutral in 2050.
LCL, through its commitment to sustainable finance, is delighted to be the first financial institution to support Kiloutou with its initiatives in this area and in particular the implementation of its environmental, social and community impact strategy.