International food retailer Ahold Delhaize announced today the successful close of a €1 billion, Sustainability-linked Revolving Credit Facility. The company has been a sustainable finance leader in the retail industry, including becoming the first retailer to issue a euro-denominated Sustainability Bond in a €600 million financing last year.
Sustainability-linked securities have attributes including interest payments tied to an issuer’s achievement of specific sustainability targets. Ahold Delhaize’s new credit facility’s cost of borrowing will be tied to several of the company’s sustainability goals, including food waste reduction, measured by percentage reduction in tons of food waste per million Euro food sales; carbon emission reduction, measured by percentage reduction of Scope 1 and Scope 2 CO2-equivalent emissions, and; promotion of healthier eating, measured by percentage of own brand food sales from healthy products. The company will report on the progress on these ambitions in its annual report.
Natalie Knight, Ahold Delhaize Chief Financial Officer, said:
“This is an important facility for Ahold Delhaize that ensures we maintain our financial flexibility. After having issued the first euro-denominated Sustainability Bond in the Retail industry in June 2019, we believe that linking this facility with our significant Healthy & Sustainable ambition will deliver a positive outcome for all stakeholders.”