Ahold Delhaize Announces $1.2 Billion Sustainability-Linked Revolving Credit Facility
ZAANDAM, THE NETHERLANDS - Ahold Delhaize recently announced a refinancing strategy that will allow it to better advance its sustainability goals, such as lowering food waste, reducing carbon emissions, and promoting healthy eating with its shoppers. This €1 billion ($1.2 billion) Sustainability-linked Revolving Credit Facility (Facility) is a line of credit that refinances the retailer’s existing 2015-dated €1 billion facility.
“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,” remarked Natalie Knight, Chief Financial Officer.
According to a press release, Ahold has previously announced several initiatives regarding sustainability, all of which this current line of credit helps to promote. For example, Ahold plans to cut both food waste and carbon emissions in half by 2030.
A breakdown of the retailer’s goals from this Facility milestone include the following:
- Food waste reduction: as measured by percentage reduction in tons of food waste per million Euro food sales
- Carbon emission reduction: as measured by percentage reduction of Scope 1 and Scope 2 CO2-equivalent emissions and aligned with Ahold Delhaize SBTi-certified 2030 targets
- Promotion of healthier eating: as measured by percentage of own- brand food sales from healthy products
Through this Facility, Ahold Delhaize draws a connection between its cost of borrowing and its achievements of the above goals.
As sustainability-linked goals become more common due to the fact that interest rates are cut if the borrower meets their intended targets, will we see more of this financial strategy across grocery? AndNowUKnow will report.