Since its inception global brand and leaders in All-Inclusive holidays, Club Med, has prioritised values and practices that are profoundly respectful of the environment and the populations they are located in.
This stance was confirmed by their announcement of the introduction of new five-year financing lines for a total of €300 million. Included within this amount is an amortisable tranche of €80 million, a final tranche of €140 million, and a revolving credit facility of €80 million, to replace the financing set up in 2015 when Club Med was acquired by the Fosun group. This transaction boosts the Group’s liquidity and financial flexibility while significantly improving financing conditions and extending the average duration of the debt.
This financing includes an adjustment of the cost of credit according to four sustainable development indicators of Club Med’s performance: certification of the eco-construction of new Resorts, Green Globe sustainable tourism certification for the operation of Resorts, the gradual elimination of disposable single-use plastics, and the support for local agroecology.
MD of Club Med SA Olivier Hannaert noted “As a brand it is important to choose and integrate criteria into the refinancing strategy that symbolises our values and practices for the next five years. We are therefore proud of the position taken by Club Med and of this refinancing program, which gives us the opportunity to stimulate and highlight our efforts and those of our partners towards more sustainable tourism.”
- Eco-construction certification of new Resorts
New Club Med Resorts will be certified by BREEAM, an international and independent eco-construction certification body, and one the most recognised worldwide (or equivalent depending on the region of the world), which evaluates the design and construction of different types of buildings. 75% of Club Med Resorts opening in 2019 will be eco-certified. The goal is to reach 100% of Resorts opening in 2022 and beyond.
- Green Globe certification for the sustainable management of Club Med Resorts
- Green Globe is one of the most recognised and demanding international and independent sustainable tourism certification. It is awarded to tourism industry establishments committed to a comprehensive approach and to continuously improving the environmental and social management of their business. To date, 81% of Club Med Resorts are certified. The goal is to reach 100% by 2021.
- Gradual removal of disposable single-use plastics
By the end of 2019, single-use plastic straws, cups, plates, cutlery and trays will be eliminated from Club Med Resorts. Shower gels, shampoos and body creams provided in bathrooms will be presented in large reusable containers. The aim is then to gradually eliminate or replace all single-use plastic items with products made from other materials or recycled plastic.
- Contribution to local economic development and promotion of agroecology
As part of the “Green Farmers” programme, which promotes the sourcing of supplies from producers located close to Club Med Resorts and the use of agro-ecological practices, since 2008 Club Med has supported local farming and agroecology in partnership with AGRISUD. In 2019, over 2,500 people (farmers and their families) were supported in accessing new markets, such as Club Med, which aims to launch one new project per year on average.
These four measurable and concrete criteria cover important sustainable development issues for Club Med’s activities, from construction to the day-to-day management of Resorts within host communities all over the world.
An improvement that is in line with or exceeds the Group’s ambitions in one or other of these areas will result in a decrease in the cost of the credit, whereas a deterioration or insufficient improvement will lead to an increase. The success of this refinancing operation demonstrates the improvement in Club Med’s operational and financial performance.
The 11 participating international financial institutions are:
- Global Coordinators: Crédit Agricole CIB and Natixis
- Documentation agent / Facility agent: Natixis
- Sustainability Agent: Crédit Agricole CIB
- Mandated arrangers and book-keepers: BNP Paribas, Crédit Agricole Group (Crédit Agricole CIB, Crédit Lyonnais and CRCAM des Savoie), HSBC France, Natixis
- Mandated Arranger: CaixaBank, Société Générale Group
- Arrangers: Arkéa, Banco do Brazil, BBVA, JP Morgan, Sabadell