Hydro’s Alunorte has signed a USD 200 million sustainability-linked loan for the fuel switch project. The pricing of the loan will be linked to the performance of the company’s greenhouse gas emission reduction target. The seven-year loan facility is structured as a sustainability linked loan, swapped to fixed rate. Six of Alunorte’s core banks participated in the financing: BNPP, acting as a coordinator and sustainability coordinator, DNB as the agent to the facility and Citi is the swap coordinator. Credit Agricole, ING and Itau also participated.The sustainability link was incorporated in the facility and interest rate swap, linking pricing to performance on the greenhouse gas emission reduction target to be achieved through the Alunorte fuel switch project.This is Alunorte’s first loan and swap with a sustainability link, and the sustainability-linked derivative also constitutes a landmark as the first ever such structure to be executed in the Brazilian market.The Alunorte fuel switch project will replace heavy fuel oil with natural gas at the Alunorte alumina refinery in Brazil. The fuel switch will reduce the refinery’s annual CO2 emissions by 700,000 tonnes when completed.Hydro Alunorte is the world's largest alumina refinery outside China and is located in the city of Barcarena, State of Pará.