Owens-Illinois (O-I) is furthering its commitment to sustainability by securing a $225 million bank loan, with a sustainability-linked pricing mechanism.

The loan will be issued to OI European Group BV, a wholly owned subsidiary, and proceeds will be used to retire existing bank debt.

The Bank of America, who will also serve as Sustainability Coordinator for this transaction, will provide funding.

The bank loan is one of the first sustainable improvement loans in the Food and Packaging Industry.

John Haudrich, Chief Financial Officer at O-I said: “Sustainability is key to our Company, investors, customers and consumers.

“This financing reinforces our commitment to sustainability by linking the rate structure of the loan to an independent assessment of our continued efforts to improve and advance the Company’s sustainability practices.”

“We are extremely proud of the product we make, and we believe the environmental and health benefits of glass packaging are an important component to the Company’s overall success.”

“We have made significant progress, but the journey continues. Glass packaging is healthy, safe and 100% recyclable.

“We take great pride knowing the food and beverages that you consume are being provided in a product that is kind to our planet,” said Jim Nordmeyer, VP, Global Sustainability.