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Ahold Delhaize has priced an inaugural Sustainability-Linked Bond at $717 million as the corporate appears to be like to finance its sustainability objectives in 2021 and past.
The transaction follows the closing of a $1.1 billion Sustainability-Linked Revolving Credit score Facility in December 2020 and the 2019 issuance of an inaugural Sustainability Bond, the place the proceeds have been completely spent on sustainability tasks throughout Ahold Delhaize. All three reinforce the alignment of the corporate’s funding technique to its commitments specified by its Healthy & Sustainable ambition.
“I’m excited to concern our first Sustainability-Linked Bond right this moment. It helps us speed up the achievement of the ESG targets we set in our Wholesome and Sustainable roadmap and is one other essential step for our group to contribute to the 1.5-degree Paris settlement,” mentioned Frans Muller, CEO of Ahold Delhaize.
The bond pays an annual coupon of 0.375% and was issued at a worth of 99.63% of the nominal worth. The bond will settle on March 18, 2021 and might be listed on Euronext Amsterdam. The proceeds might be used for refinancing of debt maturities and basic company functions.
The bond is linked to Ahold Delhaize attaining two Sustainability Efficiency Targets (SPTs) by 2025:
SPT 1: Discount of Scope 1 and a pair of CO2e emissions by 29% from a 2018 baseline
SPT 2: Discount of meals waste by 32% from a 2016 baseline
The sustainability-linked characteristic will end in a coupon adjustment if Ahold Delhaize’s efficiency doesn’t obtain one or each of the said SPTs.
SPT 1 and a pair of are aligned with Ahold Delhaize’s 2030 objectives aiming to cut back Scope 1 and a pair of CO2e emissions by 50% and meals waste by 50%. The carbon emission purpose is validated by the Science Primarily based Targets Initiative and the meals waste purpose is measured in accordance with the Meals Loss and Waste Protocol.
“Sustainability-Linked Bonds characterize the following part of our ESG financing, the place we carry our long-term commitments to sort out our carbon footprint and meals waste on to our buyers. I’m grateful for the belief our buyers place in us and sit up for additional partnering with them on our sustainability journey,” mentioned Natalie Knight, CFO of Ahold Delhaize.
Ahold Delhaize USA, a division of Zaandam, Netherlands-based Ahold Delhaize, is No. 11 on The PG 100, Progressive Grocer’s 2020 checklist of the top food and consumables retailers in the United States.
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