Less than 10 days after signing the agreement to acquire the North American engineering company McIntosh Perry, Egis has closed the transaction, which becomes effective on 30 June 2023.
The deal is being financed by a pool of French banks under an inaugural Sustainability-Linked Loan, which reflects the alignment of the Group's external growth strategy with its raison d'être and its objectives defined against climate change.
Responsible growth and major challenges of decarbonisation
Since 2020, Egis has been actively pursuing its international development through a sustained acquisition policy. This dynamic is part of its Impact The Future strategic plan, which aims to transform the Group's activities and business processes in order to increase its positive contribution to the challenges of environmental, energy and low-carbon transition.
The Group's ambitions have enabled it to take a further step forward by introducing a Sustainability-Linked Loan.
Carbon footprint and Eco-design as the core KPIs
Egis, of which Tikehau Capital is the main shareholder through its T2 Energy Transition fund, is at the forefront of the transition to a low-carbon economy, designing and operating sustainable infrastructure and buildings that mitigate and adapt to climate change and preserve ecosystems. Egis has recently strengthened the integration of ESG criteria into several of its operational and strategic processes. The Group has also taken steps to significantly increase the proportion of its revenue that contributes to the environmental and energy transition.
The Sustainability-Linked Loan is based on concrete and ambitious Sustainability Key Performance Indicators (KPIs) which are reflecting Egis commitment towards the global carbon neutrality. The margin adjustment mechanism is based on two categories of objectives:
- Reducing its own gas emissions, with two indicators, one corresponding to the proportion of turnover covered by the carbon footprint measurement, and the other relating to the reduction of this footprint, with a commitment by Egis to achieve "Net Zero" carbon neutrality by 2050. These targets will be subject to approval by the Science Based Target initiative (SBTi) in 2024;
- Increasing the proportion of eco-designed projects, with a first indicator targeting the proportion of engineers trained in the Act4ecodesign eco-design approach, and a second indicator corresponding to the proportion of eco-designed projects. Eco-design is by far the Group's most important lever for action, insofar as it enables its clients to make concrete investments in the energy transition via projects eco-designed by Egis. The Group has set itself the goal of carrying out all its projects using an eco-design approach by 2030. To achieve this, Egis is investing heavily in tools and training that will enable each employee to deploy eco-design in all their projects.
These performance indicators have been reviewed by ISS ESG, which has confirmed their alignment with the Sustainability Reporting Principles, as administered and published by the International Capital Markets Association in June 2020, and by the Loan Market Association in March 2022.
Financing underwritten by a large pool of French banks
The Sustainability-Linked Loan was concluded with Egis' banking partners : BNP Paribas, Crédit Agricole CIB, Natixis, and Société Générale as Mandated Lead Arrangers and Bookrunners; Banque Européenne du Crédit Mutuel, Banque Palatine, Bred, Caisse d'Epargne IDF and La Banque Postale as Mandated Lead Arrangers. Natixis also acted as ESG coordinator. By participating in this financing, the banks are demonstrating their commitment to environmental issues and their confidence in Egis' execution of its strategic plan.