By Maitane Sardon

Beer giant Anheuser-Busch InBev SA has signed a $10.1 billion debt facility that will allow it to lower the interest rate if it meets certain sustainability targets.

The sustainability-linked revolving-credit facility is one of the largest ESG-linked loans signed to date and is also the first of its kind among publicly listed companies in the beverage sector.

The maker of Budweiser and Stella Artois said the new revolving-credit facility replaces its existing $9 billion financing line and has as a five-year term that can be extended by two years.

It ties interest margins to its attainment of sustainability goals. The company aims to make its packaging using mainly recycled content, cut by 25% the carbon dioxide it emits across its value chain and improve the water efficiency of its breweries. It targets to purchase 100% of its electricity from renewable sources.

"We are excited by the further integration of sustainable finance principles into the capital markets and welcome the opportunity to embed these practices deeper into both our finance organization and the broader company," said Fernando Tennenbaum, chief financial officer at Anheuser-Busch. "Our business is closely tied to the natural environment, and it is imperative that we continue to strengthen our leadership in addressing the increasing threats of climate change."

The new facility is provided by a consortium of 26 financial institutions, with Dutch bank ING Groep NV and Banco Santander SA acting as joint sustainability coordinators.

The move comes as ESG-linked financing continues to gain ground among corporations as a way to align their environmental, social and governance goals with their financial strategies.

Last year, companies and governments issued a record $732.1 billion in sustainable debt including bonds and loans, a 29% increase from 2019, according to BloombergNEF, a data provider.

Write to Maitane Sardon at maitane.sardon@wsj.com

(END) Dow Jones Newswires

02-18-21 1308ET